| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to local government; raising the revenue threshold requiring cities to |
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| 3 | 3 | | 1.3 perform annual audits; amending Minnesota Statutes 2024, section 412.591, |
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| 4 | 4 | | 1.4 subdivision 3. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2024, section 412.591, subdivision 3, is amended to read: |
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| 7 | 7 | | 1.7 Subd. 3.Audit standards if combined.(a) If the offices of clerk and treasurer are |
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| 8 | 8 | | 1.8combined as provided by this section, and the city's annual revenue for all governmental |
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| 9 | 9 | | 1.9and enterprise funds combined is more than the amount in paragraph (b), the council shall |
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| 10 | 10 | | 1.10provide for an annual audit of the city's financial affairs by the state auditor or a certified |
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| 11 | 11 | | 1.11public accountant in accordance with minimum procedures prescribed by the state auditor. |
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| 12 | 12 | | 1.12If the offices of clerk and treasurer are combined and the city's annual revenue for all |
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| 13 | 13 | | 1.13governmental and enterprise funds combined is the amount in paragraph (b), or less, the |
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| 14 | 14 | | 1.14council shall provide for an audit of the city's financial affairs by the state auditor or a |
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| 15 | 15 | | 1.15certified public accountant in accordance with minimum audit procedures prescribed by the |
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| 16 | 16 | | 1.16state auditor at least once every five years, which audit shall be for a one-year period to be |
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| 17 | 17 | | 1.17determined at random by the person conducting the audit. |
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| 18 | 18 | | 1.18 (b) For the purposes of paragraph (a), the amount in 2004 2025 is $150,000 $500,000, |
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| 19 | 19 | | 1.19and in 2005 and after, $150,000 is adjusted annually thereafter for inflation using the annual |
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| 20 | 20 | | 1.20implicit price deflator for state and local expenditures as published by the United States |
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| 21 | 21 | | 1.21Department of Commerce. |
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| 22 | 22 | | 1.22 EFFECTIVE DATE.This section is effective August 1, 2025, and applies to audits |
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| 23 | 23 | | 1.23performed for 2026 and thereafter. |
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| 24 | 24 | | 1Section 1. |
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| 25 | 25 | | 25-01882 as introduced01/15/25 REVISOR MS/BM |
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| 26 | 26 | | SENATE |
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| 27 | 27 | | STATE OF MINNESOTA |
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| 28 | 28 | | S.F. No. 564NINETY-FOURTH SESSION |
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| 29 | 29 | | (SENATE AUTHORS: HAUSCHILD) |
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| 30 | 30 | | OFFICIAL STATUSD-PGDATE |
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| 31 | 31 | | Introduction and first reading01/23/2025 |
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| 32 | 32 | | Referred to State and Local Government |
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