Minnesota Session Laws - 2004, Regular Session

                            CHAPTER 281-S.F.No. 1697 
                  An act relating to local government; increasing the 
                  threshold amount for annual audits in certain towns 
                  and statutory cities; amending Minnesota Statutes 
                  2002, sections 412.02, subdivision 3; 412.591, 
                  subdivision 2; Minnesota Statutes 2003 Supplement, 
                  section 367.36, subdivision 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2003 Supplement, section 
        367.36, subdivision 1, 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 $100,000 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 $100,000 
        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 by the Board of Accountancy under 
        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. 
           Sec. 2.  Minnesota Statutes 2002, section 412.02, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CLERK, TREASURER COMBINED.] (a) In cities 
        operating under the standard plan of government the council may 
        by ordinance adopted at least 60 days before the next regular 
        city election combine the offices of clerk and treasurer in the 
        office of clerk-treasurer, but such an ordinance shall not be 
        effective until the expiration of the term of the incumbent 
        treasurer or when an earlier vacancy occurs.  After the 
        effective date of the ordinance, the duties of the treasurer and 
        deputy treasurer as prescribed by this chapter shall be 
        performed by the clerk-treasurer or a duly appointed deputy.  
        The offices of clerk and treasurer may be reestablished by 
        ordinance.  
           (b) If the offices of clerk and treasurer are combined as 
        provided by this section and the city's annual revenue for all 
        governmental and enterprise funds combined is more than $100,000 
        the amount in paragraph (c), the council shall provide for an 
        annual audit of the city's financial affairs by the state 
        auditor or a public accountant in accordance with minimum 
        auditing procedures prescribed by the state auditor.  If the 
        offices of clerk and treasurer are combined and the city's 
        annual revenue for all governmental and enterprise funds 
        combined is $100,000 the amount in paragraph (c), or less, the 
        council shall provide for an audit of the city'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. 
           (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. 
           Sec. 3.  Minnesota Statutes 2002, section 412.591, 
        subdivision 2, is amended to read: 
           Subd. 2.  (a) Cities operating under Optional Plan A may, 
        by an ordinance effective after the expiration of the term of 
        the incumbent treasurer at the date of adoption of Optional Plan 
        A, combine the offices of clerk and treasurer in the office of 
        clerk-treasurer and thereafter the duties of the treasurer as 
        prescribed by this chapter shall be performed by the 
        clerk-treasurer.  The offices of clerk and treasurer may be 
        reestablished by ordinance.  
           (b) If the offices of clerk and treasurer are combined as 
        provided by this section, and the city's annual revenue for all 
        governmental and enterprise funds combined is more than $100,000 
        the amount in paragraph (c), the council shall provide for an 
        annual audit of the city's financial affairs by the state 
        auditor or a public accountant in accordance with minimum 
        procedures prescribed by the state auditor.  If the offices of 
        clerk and treasurer are combined and the city's annual revenue 
        for all governmental and enterprise funds combined is $100,000 
        the amount in paragraph (c), or less, the council shall provide 
        for an audit of the city'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. 
           (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. 
           Presented to the governor May 18, 2004 
           Signed by the governor May 29, 2004, 12:10 p.m.