House Study Bill 618 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED AUDITOR OF STATE BILL) A BILL FOR An Act relating to the establishment of periodic examination 1 fees from certain cities by the auditor of state. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5257XD (2) 88 ec/rn
S.F. _____ H.F. _____ Section 1. Section 11.6, subsection 11, paragraph a, Code 1 2020, is amended to read as follows: 2 a. The auditor of state shall adopt rules in accordance with 3 chapter 17A to establish and collect a periodic examination fee 4 from cities that are not required to have an audit or required 5 fiscal year examination conducted pursuant to subsection 1 6 during a fiscal year. Such fees are due on March 31 each year. 7 The auditor of state shall base the fees on a sliding scale, 8 based on the city’s budgeted gross expenditures, to produce 9 total revenue of not more than three hundred seventy-five six 10 hundred thousand dollars for each fiscal year. However, cities 11 that pay a filing fee for an audit or examination pursuant to 12 subsection 10 during the fiscal year are not required to pay 13 the examination fee. The funds collected shall be maintained 14 in a segregated account for use by the office of the auditor of 15 state in performing periodic examinations conducted pursuant 16 to subsection 1 . However, if the fees collected in one fiscal 17 year exceed three hundred seventy-five six hundred thousand 18 dollars, the auditor of state shall apply the excess funds 19 to provide training to city officials on municipal financial 20 management or shall contract with a qualified organization 21 to provide such training. Notwithstanding section 8.33 , any 22 fees collected by the auditor of state for these purposes that 23 remain unexpended at the end of the fiscal year shall not 24 revert to the general fund of the state or any other fund but 25 shall remain available for use for the following fiscal year 26 for the purposes authorized in this subsection . 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill concerns the authority of the auditor of state 31 to establish a periodic examination fee to be collected from 32 cities that are not otherwise required to have an audit or 33 required fiscal year examination conducted during a fiscal 34 year. The bill allows the auditor to base the fees in such a 35 -1- LSB 5257XD (2) 88 ec/rn 1/ 2
S.F. _____ H.F. _____ manner as to produce total revenue of not more than $600,000 1 in a fiscal year. Current law only allows the auditor to set 2 fees that generate not more than $375,000 in total revenue 3 in a fiscal year. Under current law, any moneys received 4 in a fiscal year in excess of the revenue cap shall be used 5 to provide training to city officials on municipal financial 6 management. 7 -2- LSB 5257XD (2) 88 ec/rn 2/ 2