1997 Minnesota Statutes

CHAPTER 6. State auditor

     6.01 Duties, seal.  

    The state auditor shall superintend and manage the fiscal 
 concerns of the state as required by law.  The state auditor may 
 execute in behalf of the state assignments and satisfactions of 
 judgments rendered in its favor.  The state auditor shall have a 
 seal bearing the words "Seal of the Auditor of Minnesota" and 
 affix it to all official certificates and conveyances executed 
 by the state auditor.  

    HIST: (65) RL s 33; 1955 c 863 s 1; 1986 c 444 

     6.02 Deputies, employees. 

    The state auditor shall appoint a deputy, who may perform 
 all the duties of the office when the auditor is absent or 
 disabled.  The state auditor may employ and at pleasure dismiss 
 two additional deputies and a private secretary.  This section 
 does not increase the complement of the state auditor.  

    HIST: (66) RL s 34; 1955 c 863 s 2; 1986 c 444; 1992 c 592 s 1 

  6.03 Renumbered 16A.40 

  6.04 Renumbered 16A.41 

  6.05 Renumbered 16A.42 

  6.06 Renumbered 16A.43 

  6.07 Repealed, 1955 c 863 s 22 

  6.08 Renumbered 16A.44 

  6.09 Repealed, 1955 c 863 s 22 

  6.10 Renumbered 16A.45 

  6.11 Renumbered 16A.46 

  6.12 Renumbered 16A.47 

  6.13 Repealed, 1955 c 863 s 22 

  6.135 Repealed, 1947 c 416 s 3 

  6.136 Renumbered 16A.48 

  6.137 Renumbered 16A.49 

  6.14 Repealed, 1955 c 863 s 22 

  6.15 Repealed, 1955 c 863 s 22 

  6.16 Repealed, 1955 c 863 s 22 

  6.17 Repealed, 1955 c 863 s 22 

  6.18 Renumbered 16A.50 

  6.19 Renumbered 16A.51 

  6.20 Renumbered 16A.36 

  6.21 Renumbered 16A.055 

  6.211 Renumbered 16A.52 

  6.212 Renumbered 16A.53 

  6.213 Renumbered 16A.54 

  6.214 Renumbered 16A.55 

  6.215 Obsolete 

  6.22 Renumbered 16A.56 

  6.23 Renumbered 16A.57 

  6.24 Renumbered 16A.58 

  6.25 Renumbered 16A.59 

  6.26 Repealed, 1996 c 310 s 1 

  6.27 Repealed, 1955 c 863 s 22 

  6.28 Renumbered 16A.60 

  6.29 Renumbered 16A.61 

  6.291 Renumbered 16A.62 

  6.30 Renumbered 16A.63 

  6.31 Renumbered 16A.64 

  6.32 Repealed, 1969 c 399 s 51 

  6.321 Repealed, 1969 c 399 s 51 

  6.33 Renumbered 16A.65 

  6.34 Renumbered 16A.66 

  6.35 Renumbered 16A.67 

  6.40 Renumbered 16A.68 

  6.42 Renumbered 16A.69 

  6.43 Renumbered 16A.70 

  6.44 Renumbered 16A.71 

  6.45 Renumbered 16A.72 

     6.46 Transfer of powers of public examiner to state 
  auditor.  

    Except as otherwise provided for in Laws 1973, chapter 492, 
 relating to the legislative auditor, all the powers, duties and 
 responsibilities of the public examiner relating to audits of 
 cities of all classes, counties, towns, school districts, and 
 other governmental subdivisions or bodies corporate and politic 
 as contained in sections 6.47 to 6.71, or any other law are 
 hereby transferred to, vested in, and imposed upon the state 
 auditor.  

    HIST: 1973 c 123 art 5 s 7; 1973 c 492 s 7 

     6.47 Accounting and budgeting systems; investigation, 
  forms.  

    The state auditor shall inquire into the accounting and 
 budgeting systems of all local units of government and shall 
 prescribe suitable systems of accounts and budgeting, and forms, 
 books, and instructions concerning the same.  At the request of 
 any local unit of government the state auditor may install such 
 systems.  The state auditor shall recommend a form for order- and 
 warrant-checks of all local units of government which shall 
 conform, so far as consistent with statutory and charter 
 requirements, to approved banking practice in order to 
 facilitate handling of such instruments by banks and other 
 depositories.  

    HIST: (3286-14) 1939 c 431 art 4 s 7; 1953 c 319 s 2; 1973 c 
 492 s 14 

     6.48 Examination of counties; cost, fees. 

    All the powers and duties conferred and imposed upon the 
 state auditor shall be exercised and performed by the state 
 auditor in respect to the offices, institutions, public 
 property, and improvements of several counties of the state.  At 
 least once in each year, if funds and personnel permit, the 
 state auditor shall visit, without previous notice, each county 
 and make a thorough examination of all accounts and records 
 relating to the receipt and disbursement of the public funds and 
 the custody of the public funds, including the game and fish 
 funds, and other property.  The state auditor shall prescribe 
 and install systems of accounts and financial reports that shall 
 be uniform, so far as practicable, for the same class of 
 offices.  A copy of the report of such examination shall be 
 filed and be subject to public inspection in the office of the 
 state auditor and another copy in the office of the auditor of 
 the county thus examined.  The state auditor may accept the 
 records and audit, or any part thereof, of the department of 
 human services in lieu of examination of the county social 
 welfare funds, if such audit has been made within any period 
 covered by the state auditor's audit of the other records of the 
 county.  If any such examination shall disclose malfeasance, 
 misfeasance, or nonfeasance in any office of such county, such 
 report shall be filed with the county attorney of the county, 
 and the county attorney shall institute such civil and criminal 
 proceedings as the law and the protection of the public 
 interests shall require.  

    The county receiving such examination, and the division of 
 game and fish of the department of natural resources of the 
 state of Minnesota, in the case of the examination of the game 
 and fish funds, shall pay to the state general fund, 
 notwithstanding the provisions of section 16A.125, the total 
 cost and expenses of such examinations, including the salaries 
 paid to the examiners while actually engaged in making such 
 examination.  The state auditor on deeming it advisable may bill 
 counties, having a population of 200,000 or over, monthly for 
 services rendered and the officials responsible for approving 
 and paying claims shall cause said bill to be promptly paid.  
 The general fund shall be credited with all collections made for 
 any such examinations.  

    HIST: (3278) 1913 c 555 s 5; 1931 c 125 s 1; 1931 c 246 s 1; 
 1945 c 392 s 1; 1949 c 33 s 3; 1951 c 57 s 1; 1953 c 593 s 2; 
 1955 c 441 s 1; 1969 c 1129 art 10 s 2; 1973 c 492 s 14; 1984 c 
 654 art 5 s 58; 1986 c 444; 1989 c 335 art 4 s 2 

     6.49 Cities of first class.  

    All powers and duties conferred and imposed upon the state 
 auditor with respect to state and county officers, institutions, 
 property, and improvements are hereby extended to cities of the 
 first class.  Copies of the written report of the state auditor 
 on the financial condition and accounts of such city shall be 
 filed in the state auditor's office, with the mayor, city 
 council, and city comptroller thereof, and with the city 
 commissioners, if such city have such officers.  If such report 
 disclose malfeasance, misfeasance, or nonfeasance in office, 
 copies thereof shall be filed with the city attorney thereof and 
 with the county attorney of the county in which such city is 
 located, and these officials of the law shall institute such 
 proceedings, civil or criminal, as the law and the public 
 interest require.  

    The state auditor may bill said cities monthly for services 
 rendered and the officials responsible for approving and paying 
 claims shall cause said bill to be promptly paid.  

    HIST: (3279) 1913 c 555 s 6; 1949 c 206 s 1; 1973 c 492 s 14; 
 1986 c 444 

     6.495 Examination of fire and police relief associations.

    Subdivision 1.    Audit and examinations.  All powers 
 and duties conferred and imposed upon the state auditor with 
 respect to state, county, and first-class city officers, 
 institutions, and property are hereby extended to the various 
 fire and police relief associations in the state.  The state 
 auditor shall annually audit the special and general funds of 
 the relief association or, at the request of the board of 
 trustees or the municipality, the state auditor may contract for 
 an annual audit by a certified public accountant.  The state 
 auditor may determine that an annual audit is not necessary, in 
 which case the state auditor shall develop a plan for 
 examination of unaudited relief associations, and shall 
 prescribe suitable systems of accounts and budgeting, and forms, 
 books, and instructions concerning the same. 

    Copies of the written report of the state auditor on the 
 financial condition and accounts of the relief association shall 
 be filed with the board of trustees of the relief association 
 and the governing body of the municipality associated with the 
 relief association.  If the report discloses malfeasance, 
 misfeasance, or nonfeasance with regard to relief association 
 funds, copies thereof shall be filed with the city attorney or 
 county attorney in the city or county in which the relief 
 association is located, and these officials of the law shall 
 institute proceedings, civil or criminal, as the law and public 
 interest require. 

    Subd. 2. Repealed, 1987 c 404 s 191 

    Subd. 3.    Report to commissioner of revenue.  The 
 state auditor shall file with the commissioner of revenue a 
 financial compliance report certifying for each relief 
 association: 

    (1) the completion of the annual financial report required 
 pursuant to section 69.051 and the auditing or certification of 
 those financial reports pursuant to subdivision 1; and 

    (2) the receipt of any actuarial valuations required 
 pursuant to section 69.77 or 69.773. 

    HIST: 1986 c 359 s 2 

     6.50 Cities of second, third, or fourth class.  

    The state auditor shall have like power and duty to 
 supervise the accounts of all cities not included in section 
 6.49.  The state auditor may require the financial officers of 
 any city not included in section 6.49 to send all books, 
 accounts, and vouchers pertaining to the receipt, disbursement, 
 and custody of its public funds to the office of the state 
 auditor for examination.  The state auditor may prescribe and 
 install for such cities systems of accounts and reports, which 
 shall be uniform for each class of cities and offices.  The 
 state auditor may conduct such examinations of accounts and 
 records as the state auditor may deem the public interest to 
 demand.  

    The report of such examination shall be filed with the 
 mayor and city council or commission; and, in case of any 
 violation of law, such report shall be filed with the city 
 attorney thereof and with the county attorney of the county in 
 which the administrative offices of such city are located, and 
 these officials of the law shall institute such proceedings as 
 the law and the public interest require.  

    HIST: (3280) 1913 c 555 s 7; 1949 c 33 s 4; 1951 c 186 s 1; 
 1961 c 586 s 2; 1973 c 492 s 14; 1986 c 444 

     6.51 School districts, towns, and statutory cities.  

    All powers and duties of the state auditor herein imposed 
 and conferred with respect to the supervision, inspection, and 
 examination of books and accounts of cities in section 6.50 are 
 herewith extended to all school districts, towns, and statutory 
 cities of this state.  A copy of the report of such examination 
 shall be filed, subject to public inspection, with the clerk of 
 the town, statutory city, or school district receiving such 
 examination, and an additional copy with the county auditor of 
 the county in which the administrative offices of such town, 
 statutory city, or school district are located.  If such report 
 disclose malfeasance, misfeasance, or nonfeasance in office, the 
 state auditor shall file such copy with the county attorney of 
 the county in which the administrative offices of such school 
 district, town, or statutory city are located, and the county 
 attorney shall institute such proceedings as the law and the 
 public interest require.  

    HIST: (3281) 1913 c 555 s 8; 1961 c 586 s 3; 1973 c 123 art 5 
 s 7; 1973 c 492 s 14 

     6.515 Audit of federal money. 

    The state auditor, in respect to any political subdivision 
 subject to the state auditor's audit jurisdiction provided by 
 this chapter, is empowered to examine all accounts and records 
 of the subdivision relating to funds consisting in whole or part 
 of money received from the federal government or any agency 
 thereof. 

    HIST: 1977 c 447 art 7 s 1; 1986 c 444 

     6.52 Testimonial powers.  

    In all matters relating to official duties, the state 
 auditor shall have the powers possessed by courts of law to 
 issue subpoenas and cause them to be served and enforced.  All 
 state and county auditors, treasurers, and other public 
 officials, and their respective deputies and employees, all 
 officers, directors, and employees of all railway and other 
 companies required by law to pay taxes to the state upon a gross 
 earnings basis, and all persons having dealings with or 
 knowledge of the affairs or methods of such companies, and 
 likewise all corporations, firms, and individuals having 
 business involving the receipt, disbursement, or custody of the 
 public funds shall at all times afford reasonable facilities for 
 such examinations, make such returns and reports to the state 
 auditor as required, attend and answer under oath the auditor's 
 lawful inquiries, produce and exhibit such books, accounts, 
 documents, and property as the auditor may desire to inspect, 
 and in all things aid the auditor in the performance of duties.  

    HIST: (3283) 1913 c 555 s 10; 1973 c 492 s 14; 1986 c 444 

     6.53 Refusal to assist; penalty.  

    Every person who shall refuse or neglect to obey any lawful 
 direction of the state auditor, or the auditor's deputy or 
 assistants; withhold any information, book, record, paper, or 
 other thing called for by the auditor for the purpose of 
 examination; willfully obstruct or mislead the auditor in the 
 execution of duties; or swear falsely concerning any matter 
 stated under oath, shall be guilty of a felony, the minimum 
 penalty whereof shall be a fine of $3,000, or imprisonment in 
 the Minnesota correctional facility-Stillwater for one year.  

    HIST: (3284) 1913 c 555 s 11; 1973 c 492 s 14; 1979 c 102 s 
 13; 1984 c 628 art 3 s 11; 1986 c 444 

     6.54 Examination of municipal records pursuant to 
  petition. 

    The registered voters in a home rule charter or statutory 
 city or the electors at an annual or special town meeting of a 
 town may petition the state auditor to examine the books, 
 records, accounts, and affairs of the home rule charter or 
 statutory city, town, or of any organizational unit, activity, 
 project, enterprise, or fund thereof; and the scope of the 
 examination may be limited by the petition, but the examination 
 shall cover, at least, all cash received and disbursed and the 
 transactions relating thereto, provided that the state auditor 
 shall not examine more than the six latest years preceding the 
 circulation of the petition, unless it appears to the state 
 auditor during the examination that the audit period should be 
 extended to permit a full recovery under bonds furnished by 
 public officers or employees, and may if it appears to the 
 auditor in the public interest confine the period or the scope 
 of audit or both period and scope of audit, to less than that 
 requested by the petition.  In the case of a home rule charter 
 or statutory city, the petition shall be signed by a number of 
 registered voters at least equal to 20 percent of those voting 
 in the last presidential election.  The eligible voters of any 
 school district may petition the state auditor, who shall be 
 subject to the same restrictions regarding the scope and period 
 of audit, provided that the petition shall be signed by at least 
 ten eligible voters for each 50 resident pupils in average daily 
 membership during the preceding school year as shown on the 
 records in the office of the commissioner of children, families, 
 and learning.  In the case of school districts, the petition 
 shall be signed by at least ten eligible voters.  At the time it 
 is circulated, every petition shall contain a statement that the 
 cost of the audit will be borne by the city or school district 
 as provided by law.  Thirty days before the petition is 
 delivered to the state auditor it shall be presented to the 
 appropriate city or school district clerk and the county 
 auditor.  The county auditor shall determine and certify whether 
 the petition is signed by the required number of registered 
 voters or eligible voters as the case may be.  The certificate 
 shall be conclusive evidence thereof in any action or proceeding 
 for the recovery of the costs, charges, and expenses of any 
 examination made pursuant to the petition. 

    HIST: (3286-1) 1929 c 259 s 1; 1937 c 415 s 1; 1951 c 185 s 1; 
 1953 c 689 s 1; 1959 c 518 s 1; 1973 c 71 s 1; 1973 c 123 art 5 
 s 7; 1973 c 492 s 14; 1979 c 82 s 1; 1983 c 314 art 7 s 2; 1984 
 c 562 s 1; 1987 c 266 art 2 s 1; 1Sp1995 c 3 art 16 s 13 

     6.55 Examination of records pursuant to resolution of 
  governing body. 

    The governing body of any city, town, county or school 
 district, by appropriate resolution may ask the state auditor to 
 examine the books, records, accounts and affairs of their 
 government, or of any organizational unit, activity, project, 
 enterprise, or fund thereof; and the state auditor shall examine 
 the same upon receiving, pursuant to said resolution, a written 
 request signed by a majority of the members of the governing 
 body; and the governing body of any public utility commission, 
 or of any public corporation having a body politic and 
 corporate, or of any instrumentality joint or several of any 
 city, town, county, or school district, may request an audit of 
 its books, records, accounts and affairs in the same manner; 
 provided that the scope of the examination may be limited by the 
 request, but such examination shall cover, at least, all cash 
 received and disbursed and the transactions relating thereto.  
 Such written request shall be presented to the clerk, or 
 recording officer of such city, town, county, school district, 
 public utility commission, public corporation, or 
 instrumentality, before being presented to the state auditor, 
 who shall determine whether the same is signed by a majority of 
 the members of such governing body and, if found to be so 
 signed, shall certify such fact, and the fact that such 
 resolution was passed, which certificate shall be conclusive 
 evidence thereof in any action or proceedings for the recovery 
 of the costs, charges and expenses of any examination made 
 pursuant to such request.  Nothing contained in any of the laws 
 of the state relating to the state auditor, shall be so 
 construed as to prevent any city, town or school district from 
 employing a certified public accountant to examine its books, 
 records, accounts and affairs.  For the purposes of this 
 section, the governing body of a town is the town board.  

    HIST: (3286-2) 1929 c 259 s 2; 1943 c 188 s 1; 1953 c 689 s 2; 
 1959 c 518 s 2; 1973 c 123 art 5 s 7; 1973 c 492 s 14; 1984 c 
 562 s 2 

     6.551 Examination of grantees and contractors of local 
  governments. 

    The state auditor may examine the books, records, 
 documents, and accounting procedures and practices of a 
 contractor or grantee of a local government pursuant to section 
 16B.06, subdivision 4.  The examination shall be limited to the 
 books, records, documents, and accounting procedures and 
 practices that are relevant to the contract or transaction with 
 the local government. 

    HIST: 1993 c 315 s 1 

     6.552 Audit of county or municipal hospitals.  

    Notwithstanding the provisions of any law to the contrary, 
 any county or municipal hospital board may employ a certified 
 public accountant to annually audit and examine the books of 
 said hospital.  The report of such examination or audit by such 
 certified public accountant shall be submitted to the state 
 auditor who shall review such audit report and may accept such 
 audit or make such additional examinations as the state auditor 
 deems to be in the public interest.  

    HIST: 1974 c 489 s 1; 1986 c 444 

     6.56 Cost of examination, payment. 

    Subdivision 1.    Definition.  As used in this section, 
 "political subdivision" means any county, home rule charter or 
 statutory city, town, school district, metropolitan or regional 
 agency, or other special purpose district of the state of 
 Minnesota. 

    Subd. 2.    Billings by state auditor.  Upon the 
 examination of the books, records, accounts, and affairs of any 
 political subdivision, as provided by law, such political 
 subdivision shall be liable to the state for the total cost and 
 expenses of such examination, including the salaries paid to the 
 examiners while actually engaged in making such examination.  
 The state auditor may bill such political subdivision monthly 
 for service rendered and the officials responsible for approving 
 and paying claims are authorized to pay said bill promptly.  
 Said payments shall be without prejudice to any defense against 
 said claims that may exist or be asserted.  The general fund 
 shall be credited with all collections made for any such 
 examinations, including interest payments made pursuant to 
 subdivision 3.  

    Subd. 3.    Payment of interest on late payments required. 
  (a) A political subdivision shall pay interest to the state 
 auditor for undisputed billings when the political subdivision 
 has not paid the billing within 60 days following receipt of the 
 invoice.  A negotiated contract or agreement between a political 
 subdivision and the state auditor which requires an audit by the 
 political subdivision before acceptance and payment of the state 
 auditor's invoice shall not be considered past due until 60 days 
 after the completion of the audit by the political subdivision.  
 Before any interest payment is made, the state auditor must 
 invoice the political subdivision for the interest. 

    (b) The rate of interest paid by the political subdivision 
 on undisputed bills not paid within 60 days shall be 1.5 percent 
 per month or any part of a month. 

    (c) No interest penalties may accrue against a political 
 subdivision that delays payment of a bill due to a disagreement 
 with the state auditor over the validity of the bill if the 
 dispute is settled within 60 days after the bill became due.  
 Upon the resolution of the dispute, the political subdivision 
 must pay the state auditor accrued interest on all proper 
 invoices for which payment was not received within 60 days 
 following the receipt of the original invoice.  

    (d) The minimum monthly interest penalty payment that a 
 political subdivision shall pay the state auditor for the unpaid 
 balance for any one overdue bill equal to or in excess of $100, 
 is $10.  For unpaid balances of less than $100, the political 
 subdivision shall pay the actual penalty due to the state 
 auditor. 

    HIST: (3286-3) 1929 c 259 s 3; 1949 c 33 s 5; 1951 c 187 s 1; 
 1955 c 870 s 1; 1973 c 123 art 5 s 7; 1973 c 492 s 14; 1986 c 
 444; 1989 c 335 art 4 s 3; 1993 c 315 s 2 

     6.57 Cost of examination, collection. 

    On July first, of each year, the state auditor shall 
 certify all uncollected claims for the examination of any 
 county, city, town, or school district which have remained 
 unpaid for a period of three months from the date of such 
 claim.  The auditor shall forthwith notify the clerk, or 
 recording officer, of each county, city, town, or school 
 district against which the state has a claim that, if the same 
 is not paid, with interest at the rate of six percent per annum 
 from the date of the claim, within 90 days, the full amount 
 thereof will be certified to the county auditor of the county 
 having such examination, or to the county auditor for the county 
 or counties in which such city, town, or school district is 
 situated, for collection by special tax levy, as herein 
 provided.  Such notice shall be served by certified mail and the 
 deposit thereof in the United States mail shall constitute due 
 and legal service thereof upon the county, city, town, or school 
 district. 

    HIST: (3286-4) 1929 c 259 s 4; 1955 c 870 s 1; 1969 c 359 s 2; 
 1973 c 123 art 5 s 7; 1974 c 406 s 42; 1978 c 674 s 60 

     6.58 General fund. 

    The general fund shall be used to provide personnel, pay 
 other expenses, and for the acquisition of equipment used in 
 connection with reimbursable examinations and other duties 
 pursuant to law.  When full-time personnel are not available, 
 the state auditor may contract with private persons, firms, or 
 corporations for accounting and other technical services.  
 Notwithstanding any law to the contrary, the acquisition of 
 equipment may include duplicating equipment to be used in 
 producing the reports issued by the department.  All receipts 
 from such reimbursable examinations shall be deposited in the 
 general fund.  The state auditor is directed to adjust the 
 schedule of charges for such examinations to provide that such 
 charges shall be sufficient to cover all costs of such 
 examinations and that the aggregate charges collected shall be 
 sufficient to pay all salaries and other expenses including 
 charges for the use of the equipment used in connection with 
 such reimbursable examinations and including the cost of 
 contracting for accounting and other technical services.  The 
 schedule of charges shall be based upon an estimate of the cost 
 of performing reimbursable examinations including, but not 
 limited to, salaries, office overhead, equipment, authorized 
 contracts, and other expenses.  The state auditor may allocate a 
 proportionate part of the total costs to an hourly or daily 
 charge for each person or class of persons engaged in the 
 performance of an examination.  The schedule of charges shall 
 reflect an equitable charge for the expenses incurred in the 
 performance of any given examination.  The state auditor shall 
 review and adjust the schedule of charges for such examinations 
 at least annually and have all schedules of charges approved by 
 the commissioner of finance before they are adopted so as to 
 ensure that the amount collected shall be sufficient to pay all 
 the costs connected with such examinations during the fiscal 
 year. 

    HIST: 1947 c 634 s 24; 1959 c 518 s 4; 1969 c 399 s 49; 1974 c 
 149 s 1; 1978 c 674 s 1; 1980 c 431 s 1; 1986 c 444; 1989 c 335 
 art 4 s 4 

     6.582 Personnel plan. 

    Notwithstanding any law to the contrary, the state auditor 
 shall develop and implement for nonclerical positions in the 
 office of the state auditor a personnel recruitment and hiring 
 plan.  The plan shall be approved by the commissioner of 
 employee relations before becoming effective. 

    HIST: 1980 c 431 s 2; 1982 c 560 s 2 

     6.59 Claim of state for cost of examination, contest. 

    On or before September first following service of the 
 notice, any such county, city, town, or school district may 
 serve notice, in writing, upon the attorney general that it 
 desires to contest the legality of the state's claim, and the 
 attorney general shall forthwith file with the court 
 administrator of the district court of the county having such 
 examination, or in which such city, town, or school district, or 
 major part thereof, is situated, a verified statement of the 
 state's claim, duly itemized and serve upon the auditor or clerk 
 of such county, city, town, or school district, by certified 
 mail, a copy of such statement.  Such county, city, town, or 
 school district may file with the court administrator of such 
 district court, within ten days after the service of such 
 statement upon it, verified objections to the state's claim, and 
 such district court shall thereupon summarily, in or out of 
 term, hear and determine the amount due the state, if any, for 
 such examination, at a time and place fixed by the court 
 therefor.  The court administrator of court shall certify to the 
 county auditor of the county having such examination, or to the 
 county auditor of the county or counties in which such city, 
 town, or school district is situated, the amount so determined 
 by the court to be due to the state, if any. 

    HIST: (3286-5) 1929 c 259 s 5; 1955 c 870 s 1; 1969 c 359 s 3; 
 1973 c 123 art 5 s 7; 1978 c 674 s 60; 1Sp1986 c 3 art 1 s 82 

     6.60 State auditor, certification of amounts due.  

    On October first, of each year, the state auditor shall 
 certify the respective amounts due the state from the various 
 counties, cities, towns, and school districts, including 
 interest computed to July first, following, to the county 
 auditor of the county having such examination, or to the county 
 auditor of the county in which any such city, town, or school 
 district is, in whole or in part, situated.  The county auditor, 
 upon receiving a certificate from the state auditor, or a 
 certificate from the court administrator, as provided in section 
 6.59, shall include the amount of the state's claim, with 25 
 percent added, in the tax levy for general revenue purposes of 
 the county or municipality liable therefor, and such additional 
 levy shall not be within any limitation imposed by law upon the 
 amount of taxes which may be levied for revenue purposes.  Upon 
 completion of the June tax settlement following such levy the 
 county treasurer shall deduct from the amount apportioned to the 
 county or municipality for general revenue purposes, the amount 
 due the state, including interest, and remit the same to the 
 state treasurer.  

    HIST: (3286-6) 1929 c 259 s 6; 1955 c 870 s 1; 1969 c 359 s 4; 
 1973 c 123 art 5 s 7; 1974 c 406 s 43; 1Sp1986 c 3 art 1 s 82 

     6.61 Subject to prior enactment of laws.  

    Subject to the provisions of Laws 1939, chapter 431, the 
 state auditor shall have and exercise all the rights, powers, 
 and duties conferred upon the former public examiner by Mason's 
 Minnesota Statutes of 1927, sections 3274, 3275, 3276, 3277, 
 3279, 3280, 3281, 3282, 3283, 3284, and 3286, and the 1938 
 Supplement to Mason's Minnesota Statutes of 1927, sections 3278, 
 3286-1, 3286-2, 3286-3, 3286-4, 3286-5, 3286-6, and 3286-7, and 
 acts amendatory thereof or supplementary thereto, and all the 
 provisions thereof shall apply to and govern all matters therein 
 specified respecting the office and department of the state 
 auditor, except that any limitations therein contained as to the 
 number of employees to be appointed by the state auditor shall 
 not apply.  The state auditor shall account separately for all 
 of the charges, receipts, and disbursements of the department of 
 the state auditor pertaining to the examining and auditing of 
 all school districts, towns and cities for which charges are 
 made, and after allocating to the expense thereof a proper pro 
 rata share of the administrative expense, such functions of the 
 department of the state auditor shall be sustained, so far as 
 practicable, by the funds collected therefor from such political 
 subdivisions as otherwise provided by law.  

    HIST: (3286-15) 1939 c 431 art 4 s 8; 1973 c 123 art 5 s 7; 
 1973 c 492 s 14 

     6.62 Postaudit; tax levy. 

    Subdivision 1.    Levy of tax.  Counties, cities and 
 towns are authorized, if necessary, to levy an amount sufficient 
 to pay the expense of a postaudit by the state auditor. 

    Subd. 2.    Cost of postaudit.  The amount of said levy 
 shall be the amount of the claim or claims submitted by the 
 state auditor for such services or the auditor's estimate of the 
 entire cost, and said amount shall be certified by the governing 
 body, after the request or petition for the audit has been 
 filed, to the county auditor, along with amounts requested for 
 other governmental purposes.  If such levy has been made in 
 excess of statutory limitations, and if the request or petition 
 is withdrawn after the amount of the levy has been certified but 
 the levy cannot be canceled because it has been spread on the 
 tax lists, the governing body shall cause the proceeds of such 
 levy to be transferred to the general fund and reduce the 
 succeeding year's levy for general purposes accordingly.  
 Provided, however, counties, cities, and other governmental 
 units whose financial affairs are required by statute or charter 
 to be audited at regular intervals may levy annually or 
 biennially in anticipation of the audit expense, without the 
 presentment of such claim or estimate by the state auditor. 

    Subd. 3.    Use of proceeds of levy.  The proceeds of 
 said levy shall be set aside and used only to cover the state 
 auditor's claim. 

    HIST: 1951 c 189 s 1; 1953 c 338 s 1; 1959 c 518 s 5; 1973 c 
 123 art 5 s 7; 1973 c 492 s 14; 1978 c 764 s 1; 1983 c 314 art 7 
 s 3; 1986 c 444; 1Sp1989 c 1 art 5 s 1; 1Sp1995 c 3 art 1 s 1 

     6.63 Application.  

    The units of government set forth in sections 6.56, 6.57, 
 6.59, 6.60, and 6.62 shall be construed, where applicable, to 
 include, in addition to those therein specifically named, public 
 utility commissions, public corporations, and instrumentalities. 

    HIST: 1959 c 518 s 3 

     6.64 Cooperation with public accountants; public 
  accountant defined.  

    There shall be mutual cooperation between the state auditor 
 and public accountants in the performance of auditing, 
 accounting, and other related services for cities, towns, school 
 districts, and other public corporations.  For the purposes of 
 sections 6.64 to 6.71 the term public accountant shall have the 
 meaning ascribed to it in section 412.222.  

    HIST: 1957 c 631 s 1; 1961 c 560 s 18; 1973 c 123 art 5 s 7; 
 1973 c 492 s 14 

     6.65 Minimum procedures for auditors, prescribed. 

    The state auditor shall prescribe minimum procedures and 
 the audit scope for auditing the books, records, accounts, and 
 affairs of local governments in Minnesota.  The minimum scope 
 for audits of all local governments must include financial and 
 legal compliance audits for fiscal years ending after January 
 15, 1984.  Audits of all school districts shall include a 
 determination of compliance with uniform financial accounting 
 and reporting standards.  The state auditor shall establish a 
 task force to promulgate an audit guide for legal compliance 
 audits.  The task force must include representatives of the 
 state auditor, the attorney general, towns, cities, counties, 
 school districts, and private sector public accountants. 

    HIST: 1957 c 631 s 2; 1973 c 492 s 14; 1983 c 301 s 62; 1988 c 
 629 s 6; 1989 c 67 s 1; 1990 c 562 art 8 s 1; 1993 c 224 art 14 
 s 1 

     6.66 Certain practices of public accountants authorized. 

    Any public accountant may engage in the practice of 
 auditing the books, records, accounts, and affairs of cities, 
 towns, school districts, and other public corporations which are 
 not otherwise required by law to be audited exclusively by the 
 state auditor.  

    HIST: 1957 c 631 s 3; 1973 c 123 art 5 s 7; 1973 c 492 s 14 

     6.67 Public accountants; report of evidence pointing to 
  misconduct.  

    Whenever a public accountant in the course of auditing the 
 books and affairs of a city, town, school district, or other 
 public corporations, shall discover evidence pointing to 
 nonfeasance, misfeasance, or malfeasance, on the part of an 
 officer or employee in the conduct of duties and affairs, the 
 public accountant shall promptly make a report of such discovery 
 to the state auditor and the county attorney of the county in 
 which the governmental unit is situated and the public 
 accountant shall also furnish a copy of the report of audit upon 
 completion to said officers.  The county attorney shall act on 
 such report in the same manner as required by law for reports 
 made to the county attorney by the state auditor.  

    HIST: 1957 c 631 s 4; 1959 c 518 s 6; 1973 c 123 art 5 s 7; 
 1973 c 492 s 14; 1986 c 444 

     6.68 State auditor may assist public accountant in audit.

    Subdivision 1.    Request to governing body.  If in an 
 audit of a city, town, school district, or other public 
 corporation, a public accountant has need of the assistance of 
 the state auditor, the accountant may obtain such assistance by 
 requesting the governing body of the governmental unit being 
 examined to request the state auditor to perform such auditing 
 or investigative services, or both, as the matter and the public 
 interest require.  

    Subd. 2.    Auditor's report; payment.  The state 
 auditor shall work in close cooperation with the public 
 accountant in rendering the services so requested and the state 
 auditor shall make such report of findings to the county 
 attorney as is required by law to be made of nonfeasance, 
 misfeasance, and malfeasance discovered by the state auditor.  
 The governmental unit shall be liable for the payment of such 
 services so performed by the state auditor in the same manner as 
 if it had requested the services pursuant to section 6.55.  

    HIST: 1957 c 631 s 5; 1973 c 123 art 5 s 7; 1973 c 492 s 14; 
 1986 c 444 

     6.69 Information furnished public accountant by state 
  auditor.  

    Subdivision 1.    Governmental accounting information.  
 The state auditor, whenever time and facilities permit, shall 
 furnish information to public accountants, when requested by 
 them to do so, concerning governmental accounting and auditing 
 principles, practices, and procedures, and other related matters.

    Subd. 2.    Charge for services.  The state auditor may 
 charge the actual cost of furnishing such information and the 
 public accountant shall pay the amount so charged promptly after 
 receipt of the claim.  

    HIST: 1957 c 631 s 6; 1973 c 492 s 14 

     6.70 Access to reports.  

    The state auditor and the public accountants shall have 
 reasonable access to each other's audit reports, working papers, 
 and audit programs concerning audits made by each of cities, 
 towns, school districts, and other public corporations.  

    HIST: 1957 c 631 s 7; 1973 c 123 art 5 s 7; 1973 c 492 s 14 

     6.71 Scope of auditor's investigation.  

    Whenever the governing body of a city, town, or school 
 district shall have requested a public accountant to make an 
 audit of its books and affairs, and such audit is in progress or 
 has been completed, and freeholders petition or the governing 
 body requests or both the state auditor to make an examination 
 covering the same, or part of the same, period, the state 
 auditor may, in the public interest, limit the scope of the 
 examination to less than that specified in section 6.54, but the 
 scope shall cover, at least, an investigation of those 
 complaints which are within the state auditor's powers and 
 duties to investigate.  

    HIST: 1957 c 631 s 8; 1959 c 518 s 7; 1973 c 123 art 5 s 7; 
 1973 c 492 s 14; 1986 c 444 

     6.715 Classification of state auditor's data. 

    Subdivision 1.    Definitions.  (a) For purposes of this 
 section, "audit" means an examination, financial audit, 
 compliance audit, or investigation performed by the state 
 auditor. 

    (b) The definitions in section 13.02 apply to this section. 

    Subd. 2.    Classification.  Data relating to an audit 
 are protected nonpublic data or confidential data on 
 individuals, until the final report of the audit has been 
 published or the audit is no longer being actively pursued.  
 Data that support the conclusions of the report and that the 
 state auditor reasonably believes will result in litigation are 
 protected nonpublic data or confidential data on individuals, 
 until the litigation has been completed or is no longer being 
 actively pursued.  Data on individuals that could reasonably be 
 used to determine the identity of an individual supplying data 
 for an audit are private if the data supplied by the individual 
 were needed for an audit and the individual would not have 
 provided the data to the state auditor without an assurance that 
 the individual's identity would remain private, or the state 
 auditor reasonably believes that the subject would not have 
 provided the data.  Data that could reasonably be used to 
 determine the identity of an individual supplying data pursuant 
 to section 609.456 are private.  

    Subd. 3.    Law enforcement.  Notwithstanding any 
 provision to the contrary in subdivision 2, the state auditor 
 may share data relating to an audit with appropriate local law 
 enforcement agencies. 

    HIST: 1993 c 351 s 1 

     6.72 State auditor; report to the legislature on 
  volunteer firefighters' relief associations. 

    Subdivision 1.    Reporting requirements.  Commencing 
 November 15, 1981, and every two years thereafter, the state 
 auditor shall report to the legislature on the general financial 
 condition of the various volunteer firefighters' relief 
 associations in the state as of December 31 of the year 
 preceding the filing of the report.  Two copies of the report 
 shall be filed with the executive director of the legislative 
 commission on pensions and retirement and ten copies of the 
 report shall be filed with the director of the legislative 
 reference library.  

    Subd. 2.    Contents of report.  The report shall 
 include the aggregate totals for all volunteer firefighters' 
 relief associations directly associated with the municipal fire 
 departments and all volunteer firefighters' relief associations 
 subsidiary to independent nonprofit firefighting corporations, 
 the aggregate totals by the various benefit types and the 
 individual results for each volunteer firefighters' relief 
 association listed by various benefit types specified in 
 subdivision 3.  The following items shall be reported in each 
 instance:  

    (1) amount of accrued liability, 

    (2) amount of assets, 

    (3) amount of surplus or unfunded accrued liability, 

    (4) funding ratio, 

    (5) amount of annual accruing liability or normal cost, 

    (6) amount of annual required contribution to amortize the 
 unfunded accrued liability, 

    (7) amount of total required contribution, 

    (8) amount of fire state aid, 

    (9) amount of any municipal contributions, 

    (10) amount of administrative expenses, 

    (11) amount of service pension disbursements, 

    (12) amount of other retirement benefit disbursements, 

    (13) number of active members, 

    (14) number of retired members, 

    (15) number of deferred members, 

    (16) amount of fidelity bond of secretary and treasurer, 

    (17) amount of lump sum or monthly service pension accrued 
 per year of service credit, 

    (18) minimum retirement age required for commencement of a 
 service pension, 

    (19) minimum years of active service credit required for 
 commencement of service pension, 

    (20) minimum years of active membership credit required for 
 commencement of service pension, 

    (21) type and amount of other retirement benefits. 

    Subd. 3.    Benefit categories.  For purposes of 
 compiling the report required by this section, the various 
 benefit types shall be as follows:  

    (1) volunteer firefighters' relief associations paying a 
 lump sum service pension of:  

    (a) less than $50 per year of service, 

    (b) $50 or more, but less than $100 per year of service, 

    (c) $100 or more, but less than $200 per year of service, 

    (d) $200 or more, but less than $300 per year of service, 

    (e) $300 or more per year of service; 

    (2) volunteer firefighters' relief associations paying a 
 monthly benefit service pension of:  

    (a) less than $2 per month per year of service, 

    (b) $2 or more per month per year of service; 

    (3) volunteer firefighters' relief associations paying a 
 defined contribution service pension; 

    (4) volunteer firefighters' relief associations paying no 
 service pension.  

    HIST: 1979 c 201 s 20; 1986 c 359 s 3,26 

     6.74 Information collected from local governments.  

    The state auditor, or a designated agent, shall collect 
 annually from all city, county, and other local units of 
 government, information as to the assessment of property, 
 collection of taxes, receipts from licenses and other sources, 
 the expenditure of public funds for all purposes, borrowing, 
 debts, principal and interest payments on debts, and such other 
 information as may be needful.  The data shall be supplied upon 
 blanks prescribed by the state auditor, and all public officials 
 so called upon shall fill out properly and return promptly all 
 blanks so transmitted.  The state auditor or assistants, may 
 examine local records in order to complete or verify the 
 information.  Copies of all reports so received shall be 
 forwarded by the state auditor to the legislative auditor.  

    HIST: (3286-12) 1939 c 431 art 4 s 5; 1943 c 435 s 1; 1973 c 
 123 art 5 s 7; 1973 c 492 s 31; 1986 c 444 

     6.745 Summary budget data to the state auditor. 

    Subdivision 1.    Cities.  Annually, upon adoption of 
 the city budget, the city council of each home rule charter or 
 statutory city shall forward summary budget information to the 
 office of the state auditor.  The summary budget information 
 shall be provided on forms prescribed by the state auditor.  The 
 office of the state auditor shall work with representatives of 
 city government to develop a budget reporting form that conforms 
 with city budgeting practices and provides the necessary summary 
 budget information to the office of the state auditor.  The 
 summary budget data must include separately any net unrealized 
 gains or losses from investments.  The summary budget data shall 
 be provided to the office of the state auditor no later than 
 January 31 of each budget year. 

    Subd. 2.    Counties.  Annually, upon adoption of the 
 county budget, the county board shall forward summary budget 
 information to the office of the state auditor.  The summary 
 budget information shall be provided on forms prescribed by the 
 state auditor.  The office of the state auditor shall work with 
 representatives of county government to develop a budget 
 reporting form that conforms with county budgeting practices and 
 provides the necessary summary budget information to the office 
 of the state auditor.  The summary budget data must include 
 separately any net unrealized gains or losses from investments. 
 The summary budget data shall be provided to the office of the 
 state auditor no later than December 31 of the year preceding 
 each budget year. 

    HIST: 1993 c 315 s 3; 1995 c 134 s 1; 1996 c 399 art 1 s 1 

     6.75 Annual report.  

    The state auditor shall make and file, annually, in the 
 state auditor's office a summary report of the information 
 collected, with such compilations and analyses and 
 interpretations as may be deemed helpful.  Copies of such report 
 may be made and distributed to interested persons and 
 governmental units.  A copy of the report shall be forwarded to 
 the legislative auditor.  

    HIST: (3286-13) 1939 c 431 art 4 s 6; 1945 c 338 s 1; 1973 c 
 492 s 32; 1986 c 444 

     6.76 Local governmental expenditures for lobbyists. 

    (a) On or before January 31 of each year, all counties, 
 cities, school districts, metropolitan agencies, regional 
 railroad authorities, and the metropolitan council shall report 
 to the state auditor, on forms prescribed by the auditor, their 
 estimated expenditures paid for the previous calendar year to a 
 lobbyist as defined in section 10A.01, subdivision 11, except 
 payments to associations of local governments that are reported 
 under paragraph (b), and to any staff person not registered as a 
 lobbyist, over 25 percent of whose time is spent during the 
 legislative session on legislative matters. 

    (b) Associations of local governments subject to this 
 section shall report annually, on or before January 31, to the 
 state auditor and the association's members the proportionate 
 amount of each member's dues spent for lobbying purposes. 

    HIST: 1986 c 444; 1Sp1989 c 1 art 3 s 30; 1994 c 628 art 3 s 1; 1997 
 c 231 art 16 s 1 

     6.77 Local government expenditures for legal costs. 

    (a) On or before January 1, 1998, and each year thereafter, 
 the state auditor shall collect from all counties, cities of the 
 first, second, and third class, and school districts with 
 enrollment exceeding 100 students, information as to expenditure 
 of public funds for legal services incurred to defend the entity 
 from lawsuits and amounts paid in voluntary settlements or 
 judgments in any lawsuit.  The data must include costs incurred 
 for any fees paid as retainers for outside counsel.  Fees paid 
 for attorneys who perform work on criminal or prosecutorial 
 matters must be reported.  

    (b) The state auditor shall make and file, annually, in the 
 state auditor's office a summary report of the information 
 collected.  Copies of the report may be made and distributed to 
 interested persons and governmental units. 

    HIST: 1997 c 210 s 2