Bill Text: IA HF2226 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act relating to the auditor of state concerning legislative requests for auditor reviews, applications for certain city or township audits, and retention of certain repayments for auditor services. (Formerly HSB 549.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2018-03-12 - Withdrawn. H.J. 566. [HF2226 Detail]

Download: Iowa-2017-HF2226-Introduced.html

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House File 2226 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON STATE
                                     GOVERNMENT

                                 (SUCCESSOR TO HSB 549)

                                      A BILL FOR

  1 An Act relating to the auditor of state concerning legislative
  2    requests for auditor reviews, applications for certain city
  3    or township audits, and retention of certain repayments for
  4    auditor services.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5294HV (2) 87
    ec/rj

PAG LIN



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