Senate
File
2245
-
Introduced
SENATE
FILE
2245
BY
WEINER
,
DONAHUE
,
STAED
,
DREY
,
BLAKE
,
KNOX
,
TOWNSEND
,
ZIMMER
,
WINCKLER
,
QUIRMBACH
,
TRONE
GARRIOTT
,
BENNETT
,
PETERSEN
,
DOTZLER
,
HARDMAN
,
BISIGNANO
,
and
WAHLS
A
BILL
FOR
An
Act
relating
to
audits
of
governmental
subdivisions
by
the
1
state
auditor
concerning
suspected
embezzlement,
theft,
or
2
other
significant
financial
irregularities.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
11.6,
Code
2026,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
7A.
Upon
notification
of
any
suspected
3
misuse
of
public
funds
as
described
in
subsection
7,
the
4
certified
public
accountant
and
the
governmental
subdivision
5
shall
cooperate
with
the
auditor
of
state
to
establish
6
procedures
to
investigate
the
suspected
embezzlement,
theft,
7
or
other
significant
financial
irregularities.
The
auditor
8
of
state
shall
determine
if
the
auditor
of
state
will
perform
9
further
procedures.
The
governmental
subdivision
shall
10
reimburse
the
auditor
of
state
for
any
actions
taken
by
the
11
auditor
of
state
to
investigate
the
suspected
embezzlement,
12
theft,
or
other
significant
financial
irregularities.
The
13
costs
assessed
shall
not
exceed
the
amount
of
the
public
funds
14
misused
as
determined
by
the
auditor.
15
EXPLANATION
16
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
17
the
explanation’s
substance
by
the
members
of
the
general
assembly.
18
This
bill
relates
to
audits
of
governmental
subdivisions
19
concerning
suspected
embezzlement,
theft,
or
other
significant
20
financial
irregularities.
21
The
bill
provides
that
upon
notification
to
the
auditor
22
of
state
by
a
certified
public
accountant
and
a
governmental
23
subdivision
of
any
misuse
of
public
funds
involving
any
24
suspected
embezzlement,
theft,
or
other
significant
financial
25
irregularities
of
a
governmental
subdivision
of
this
state,
the
26
certified
public
accountant
and
the
governmental
subdivision
27
shall
cooperate
with
the
auditor
of
state
to
establish
28
procedures
to
investigate
the
suspected
embezzlement,
theft,
29
or
other
significant
financial
irregularities.
The
auditor
30
of
state
shall
determine
if
the
auditor
of
state
will
perform
31
further
procedures.
The
governmental
subdivision
shall
32
reimburse
the
auditor
of
state
for
any
actions
taken
by
the
33
auditor
of
state
to
investigate
the
reported
embezzlement,
34
theft,
or
other
significant
financial
irregularities.
The
35
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2245
costs
assessed
shall
not
exceed
the
amount
of
the
public
funds
1
misused
as
determined
by
the
auditor.
2
“Governmental
subdivision”
is
defined
in
Code
section
11.1
3
as
cities
and
administrative
agencies
established
by
cities,
4
hospitals
or
health
care
facilities
established
by
a
city,
5
counties,
county
hospitals
organized
under
Code
chapters
347
6
and
347A,
memorial
hospitals
organized
under
Code
chapter
37,
7
entities
organized
under
Code
chapter
28E,
community
colleges,
8
area
education
agencies,
and
school
districts.
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