Senate Study Bill 3117 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED AUDITOR OF STATE BILL) 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 5294XD (3) 87 ec/rj
S.F. _____ H.F. _____ 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. a. 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 b. If the state department that is the subject of the review 13 is not listed in section 11.5B, the cost of the review and any 14 subsequent assistance provided by the auditor of state may be 15 paid as an expense from the appropriations addressed in section 16 7D.29, if authorized by the executive council. 17 Sec. 2. Section 11.6, subsection 3, Code 2018, is amended 18 to read as follows: 19 3. A township or city for which audits are not required 20 under subsection 1 may contract with or employ the auditor 21 of state or certified public accountants for an audit or 22 examination of its financial transactions and condition of its 23 funds. An audit is mandatory on Upon receipt of an application 24 requesting an audit by one hundred or more taxpayers, or if 25 there are fewer than six hundred sixty-seven taxpayers in the 26 township or city, then by fifteen percent of the taxpayers , the 27 township or city shall forward a copy of the application to the 28 auditor of state for a determination of whether the auditor of 29 state will require an audit or examination . If the auditor of 30 state determines that an examination may be conducted instead 31 of an audit, the auditor of state shall determine the scope of 32 the examination. Payment for the audit or examination shall be 33 made from the proper public funds of the township or city. 34 Sec. 3. Section 11.21, Code 2018, is amended by adding the 35 -1- LSB 5294XD (3) 87 ec/rj 1/ 3
S.F. _____ H.F. _____ following new subsection: 1 NEW SUBSECTION . 3. Payments made by a political subdivision 2 to the auditor of state under this section as a result of 3 services performed by the auditor of state may be retained by 4 the auditor of state in the fiscal year in which the payment is 5 received and shall remain available for use in that fiscal year 6 for the purposes of the auditor of state. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill concerns the auditor of state. 11 New Code section 11.5C provides that the auditor of state, at 12 the request of a member of the general assembly, may conduct 13 a review concerning the receipt and expenditure of state or 14 federal funds provided to a state department. Costs for the 15 review shall be reimbursed by the applicable department if the 16 department is listed as a department required to reimburse 17 costs under Code section 11.5B. If the department is not 18 required to reimburse costs under Code section 11.5B, the 19 auditor may request reimbursement of the cost as an expense 20 from the appropriations addressed in Code section 7D.29, if 21 authorized by the executive council. 22 Code section 11.6(3), concerning an application by taxpayers 23 for an audit for a city or township not otherwise required to 24 conduct an audit, is amended. The bill provides that upon 25 application for an audit by a sufficient number of taxpayers, 26 the city or township shall forward a copy of the application to 27 the auditor of state for a determination of whether the auditor 28 will require an audit or examination. If the auditor of state 29 determines that an examination may be conducted instead of 30 an audit, the auditor of state shall determine the scope of 31 the examination. Current law requires that upon application 32 for an audit by a sufficient number of taxpayers, an audit is 33 mandatory. 34 Code section 11.21, concerning the payment of certain audit 35 -2- LSB 5294XD (3) 87 ec/rj 2/ 3
S.F. _____ H.F. _____ expenses by a political subdivision, is amended. The bill 1 provides that any payments made by a political subdivision to 2 the auditor of state may be retained by the auditor of state 3 in the fiscal year in which the payment is received and shall 4 remain available for use in that fiscal year for the purposes 5 of the auditor of state. 6 -3- LSB 5294XD (3) 87 ec/rj 3/ 3