Senate File 475 H-8014 Amend the amendment, H-8001, to Senate File 475, as amended, 1 passed, and reprinted by the Senate, as follows: 2 1. Page 1, after line 6 by inserting: 3 < Section 1. Section 11.6, subsection 1, paragraph a, 4 subparagraph (1), Code 2018, is amended to read as follows: 5 (1) Except for entities organized under chapter 28E having 6 gross receipts of one hundred thousand dollars or less in a 7 fiscal year, the financial condition and transactions of all 8 government subdivisions shall be audited annually, except 9 that cities having a population of less than two thousand 10 and budgeted gross expenditures of one million dollars or 11 more in a fiscal year shall be subject to a required fiscal 12 year examination for that fiscal year according to procedures 13 established by the office of auditor of state, and cities 14 having a population of less than two thousand and budgeted 15 gross expenditures of less than one million dollars in a fiscal 16 year shall be subject to periodic examination by the auditor 17 of state according to procedures established by the auditor 18 of state, and may be examined as otherwise provided in this 19 section . However, a city having a population of less than two 20 thousand and budgeted gross expenditures of one million dollars 21 or more in a fiscal year shall not be subject to a required 22 fiscal year examination until the city has two consecutive 23 years of budgeted gross expenditures of one million dollars 24 or more in both fiscal years, and such examination shall be 25 conducted during the second of such fiscal years. A city 26 meeting the requirements for a periodic examination shall be 27 subject to an examination under this section at least once 28 during an eight-year period at a time determined by the auditor 29 of state. The audit of school districts shall include an audit 30 of all school funds including categorical funding provided by 31 the state, the certified annual financial report, the certified 32 enrollment as provided in section 257.6 , supplementary 33 weighting as provided in section 257.11 , the revenues and 34 expenditures of any nonprofit school organization established 35 -1- H8001.2896 (2) 87 kh/rj 1/ 2 #1.
pursuant to section 279.62 , and entrepreneurial education 1 funds established pursuant to section 298A.15 . Differences in 2 certified enrollment shall be reported to the department of 3 management. The audit of school districts shall include at a 4 minimum a determination that the laws of the state are being 5 followed, that categorical funding is not used to supplant 6 other funding except as otherwise provided, that supplementary 7 weighting is pursuant to an eligible sharing condition, and 8 that postsecondary courses provided in accordance with section 9 257.11 and chapter 261E supplement, rather than supplant, 10 school district courses. If a school district enters into 11 a contract with a private provider to provide educational 12 courses or curriculum developed by the private provider and 13 delivered primarily over the internet, the private provider 14 shall be subject to the same audit requirements under this 15 section as the school district and the audit of the private 16 provider shall include but not be limited to analysis of how 17 school district money received by the private provider during 18 the school calendar were expended on administrative costs, 19 advertising costs, practitioner salaries, and nonpersonnel 20 education-related costs. The audit of a city that owns or 21 operates a municipal utility providing local exchange services 22 pursuant to chapter 476 shall include performing tests of 23 the city’s compliance with section 388.10 . The audit of a 24 city that owns or operates a municipal utility providing 25 telecommunications services pursuant to section 388.10 shall 26 include performing tests of the city’s compliance with section 27 388.10 . > 28 2. By renumbering as necessary. 29 ______________________________ MASCHER of Johnson -2- H8001.2896 (2) 87 kh/rj 2/ 2 #2.