1.1 A bill for an act
1.2 relating to local government; raising the revenue threshold requiring cities to
1.3 perform annual audits; amending Minnesota Statutes 2024, section 412.591,
1.4 subdivision 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 412.591, subdivision 3, is amended to read:
1.7 Subd. 3.Audit standards if combined.(a) If the offices of clerk and treasurer are
1.8combined as provided by this section, and the city's annual revenue for all governmental
1.9and enterprise funds combined is more than the amount in paragraph (b), the council shall
1.10provide for an annual audit of the city's financial affairs by the state auditor or a certified
1.11public accountant in accordance with minimum procedures prescribed by the state auditor.
1.12If the offices of clerk and treasurer are combined and the city's annual revenue for all
1.13governmental and enterprise funds combined is the amount in paragraph (b), or less, the
1.14council shall provide for an audit of the city's financial affairs by the state auditor or a
1.15certified public accountant in accordance with minimum audit procedures prescribed by the
1.16state auditor at least once every five years, which audit shall be for a one-year period to be
1.17determined at random by the person conducting the audit.
1.18 (b) For the purposes of paragraph (a), the amount in 2004 2025 is $150,000 $500,000,
1.19and in 2005 and after, $150,000 is adjusted annually thereafter for inflation using the annual
1.20implicit price deflator for state and local expenditures as published by the United States
1.21Department of Commerce.
1.22 EFFECTIVE DATE.This section is effective August 1, 2025, and applies to audits
1.23performed for 2026 and thereafter.
1Section 1.
25-01882 as introduced01/15/25 REVISOR MS/BM
SENATE
STATE OF MINNESOTA
S.F. No. 564NINETY-FOURTH SESSION
(SENATE AUTHORS: HAUSCHILD)
OFFICIAL STATUSD-PGDATE
Introduction and first reading01/23/2025
Referred to State and Local Government