SF 2245 (LSB 5809XS (2) 91)

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 state auditor concerning suspected embezzlement, theft, or other significant financial irregularities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 11.6, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  7A.  Upon notification of any suspected misuse of public funds as described in subsection 7, the certified public accountant and the governmental subdivision shall cooperate with the auditor of state to establish procedures to investigate the suspected embezzlement, theft, or other significant financial irregularities. The auditor of state shall determine if the auditor of state will perform further procedures. The governmental subdivision shall reimburse the auditor of state for any actions taken by the auditor of state to investigate the suspected embezzlement, theft, or other significant financial irregularities. The costs assessed shall not exceed the amount of the public funds misused as determined by the auditor.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to audits of governmental subdivisions concerning suspected embezzlement, theft, or other significant financial irregularities.
   The bill provides that upon notification to the auditor of state by a certified public accountant and a governmental subdivision of any misuse of public funds involving any suspected embezzlement, theft, or other significant financial irregularities of a governmental subdivision of this state, the certified public accountant and the governmental subdivision shall cooperate with the auditor of state to establish procedures to investigate the suspected embezzlement, theft, or other significant financial irregularities. The auditor of state shall determine if the auditor of state will perform further procedures. The governmental subdivision shall reimburse the auditor of state for any actions taken by the auditor of state to investigate the reported embezzlement, theft, or other significant financial irregularities. The costs assessed shall not exceed the amount of the public funds misused as determined by the auditor.
   “Governmental subdivision” is defined in Code section 11.1 as cities and administrative agencies established by cities, hospitals or health care facilities established by a city, counties, county hospitals organized under Code chapters 347 and 347A, memorial hospitals organized under Code chapter 37, entities organized under Code chapter 28E, community colleges, area education agencies, and school districts.