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3.972 AUDITS OF AGENCIES.
    Subdivision 1. Public accountant. For the purposes of this section, "public accountant"
means a certified public accountant or certified public accounting firm licensed by the board of
accountancy under chapter 326A.
    Subd. 2. Audits of state and semistate agencies. The legislative auditor shall make a
constant audit of all financial affairs of all departments and agencies of the state, and of the
financial records and transactions of public boards, associations, and societies supported, wholly
or in part, by state funds. Once in each year, if funds and personnel permit, without previous
notice, the legislative auditor shall visit each state department and agency, association or society
and, so far as practicable,
(1) inspect;
(2) thoroughly examine its books and accounts, verifying the funds, securities, and other
assets;
(3) check the items of receipts and disbursements with its voucher records;
(4) ascertain the character of the official bonds for its officers and the financial ability of the
bonding institution;
(5) inspect its sources of revenue and the use and disposition of state appropriations and
property;
(6) investigate the methods of purchase and sale and the character of contracts on public
account;
(7) ascertain proper custody and depository for its funds and securities;
(8) verify the inventory of public property and other assets held in trust; and
(9) ascertain that all financial transactions and operations involving the public funds and
property of the state comply with the spirit and purpose of the law, are sound by modern standards
of financial management and are for the best protection of the public interest.
    Subd. 3. Audit contracts. Notwithstanding any other law, a state department, board,
commission, or other state agency shall not negotiate a contract with a public accountant for
an audit, except a contract negotiated by the state auditor for an audit of a local government,
unless the contract has been reviewed by the legislative auditor. The legislative auditor shall not
participate in the selection of the public accountant but shall review and submit written comments
on the proposed contract within seven days of its receipt. Upon completion of the audit, the
legislative auditor shall be given a copy of the final report.
History: (3276) 1913 c 555 s 3; 1949 c 33 s 2; 1973 c 492 s 28; 1983 c 317 s 2; 1986 c
444; 1988 c 469 art 1 s 1; 1992 c 542 s 4; 2001 c 109 art 2 s 1