House File 2226 - Introduced HOUSE FILE 2226 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 549) A BILL FOR An Act relating to the auditor of state concerning legislative 1 requests for auditor reviews, applications for certain city 2 or township audits, and retention of certain repayments for 3 auditor services. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5294HV (2) 87 ec/rj

H.F. 2226 Section 1. NEW SECTION . 11.5C Legislative request for 1 auditor review —— reimbursement. 2 1. The auditor of state, at the request of a member of the 3 general assembly, may review the records covering the receipt 4 and expenditure of state or federal funds by a state department 5 to determine if the receipt and expenditure of those funds by 6 the department is consistent with the laws, rules, regulations, 7 and contractual agreements governing those funds. 8 2. If the state department that is the subject of the 9 review is listed in section 11.5B, the state department shall 10 reimburse the auditor of state for the cost of the review and 11 any subsequent assistance provided by the auditor of state. 12 Sec. 2. Section 11.6, subsection 3, Code 2018, is amended 13 to read as follows: 14 3. A township or city for which audits are not required 15 under subsection 1 may contract with or employ the auditor 16 of state or certified public accountants for an audit or 17 examination of its financial transactions and condition of its 18 funds. An audit is mandatory on Upon receipt of an application 19 requesting an audit by one hundred or more taxpayers, or if 20 there are fewer than six hundred sixty-seven taxpayers in the 21 township or city, then by fifteen percent of the taxpayers , the 22 township or city shall forward a copy of the application to the 23 auditor of state for a determination of whether the auditor of 24 state will require an audit or examination . If the auditor of 25 state determines that an examination may be conducted instead 26 of an audit, the auditor of state shall determine the scope of 27 the examination. Payment for the audit or examination shall be 28 made from the proper public funds of the township or city. 29 Sec. 3. Section 11.21, Code 2018, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 3. Payments made by a political subdivision 32 to the auditor of state under this section as a result of 33 services performed by the auditor of state may be retained by 34 the auditor of state in the fiscal year in which the payment is 35 -1- LSB 5294HV (2) 87 ec/rj 1/ 2

H.F. 2226 received and shall remain available for use in that fiscal year 1 for the purposes of the auditor of state. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill concerns the auditor of state. 6 New Code section 11.5C provides that the auditor of state, at 7 the request of a member of the general assembly, may conduct 8 a review concerning the receipt and expenditure of state or 9 federal funds provided to a state department. Costs for the 10 review shall be reimbursed by the applicable department if the 11 department is listed as a department required to reimburse 12 costs under Code section 11.5B. 13 Code section 11.6(3), concerning an application by taxpayers 14 for an audit for a city or township not otherwise required to 15 conduct an audit, is amended. The bill provides that upon 16 application for an audit by a sufficient number of taxpayers, 17 the city or township shall forward a copy of the application to 18 the auditor of state for a determination of whether the auditor 19 will require an audit or examination. If the auditor of state 20 determines that an examination may be conducted instead of 21 an audit, the auditor of state shall determine the scope of 22 the examination. Current law requires that upon application 23 for an audit by a sufficient number of taxpayers, an audit is 24 mandatory. 25 Code section 11.21, concerning the payment of certain audit 26 expenses by a political subdivision, is amended. The bill 27 provides that any payments made by a political subdivision to 28 the auditor of state may be retained by the auditor of state 29 in the fiscal year in which the payment is received and shall 30 remain available for use in that fiscal year for the purposes 31 of the auditor of state. 32 -2- LSB 5294HV (2) 87 ec/rj 2/ 2