SF 3350

as introduced - 86th Legislature (2009 - 2010) Posted on 04/09/2010 12:58pm

A bill for an act
relating to local government; eliminating audit requirements for very small
towns; amending Minnesota Statutes 2008, section 367.36, subdivision 1, as
amended.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 367.36, subdivision 1, as amended by
Laws 2010, chapter 191, section 6, is amended to read:

Subdivision 1.

Transition; audit.

(a) In a town in which option D is adopted, the
incumbent treasurer shall continue in office until the expiration of the term. Thereafter, or
at any time a vacancy other than a temporary vacancy under section 367.03 occurs in the
position, the duties of the treasurer prescribed by law shall be performed by the clerk who
shall be referred to as the clerk-treasurer. If option D is adopted at an election in which the
treasurer is also elected, the election of the treasurer's position is void.

(b) If the offices of clerk and treasurer are combined and the town's annual revenue
is more than the amount in paragraph (c), the town board shall provide for an annual audit
of the town's financial affairs by the state auditor or a public accountant in accordance
with minimum audit procedures prescribed by the state auditor. If the offices of clerk and
treasurer are combined and the town's annual revenue is the amount in paragraph (c) or
less, the town board shall provide for an audit of the town's financial affairs by the state
auditor or a public accountant in accordance with minimum audit procedures prescribed by
the state auditor at least once every five years, which audit shall be for a one-year period to
be determined at random by the person conducting the audit. Upon completion of an audit
by a public accountant, the public accountant shall forward a copy of the audit to the state
auditor. For purposes of this subdivision, "public accountant" means a certified public
accountant or a certified public accounting firm licensed in accordance with chapter 326A.

(c) For the purposes of paragraph (b), the amount in 2004 is $150,000, and in 2005
and after, $150,000 adjusted for inflation using the annual implicit price deflator for state
and local expenditures as published by the United States Department of Commerce.

new text begin (d) If the offices of clerk and treasurer are combined, the town's population is under
125, and the town's annual revenue is less than one-third the amount in paragraph (c), the
town does not have to provide for an audit of the town's financial affairs by the state
auditor or a public accountant.
new text end