Bill Text: IA HF2455 | 2011-2012 | 84th General Assembly | Enrolled
Bill Title: A bill for an act relating to the examinations of the finances of certain cities and including effective date provisions. Effective 7-1-13.
Spectrum: Committee Bill
Status: (Passed) 2012-04-27 - Signed by Governor. H.J. 894. [HF2455 Detail]
Download: Iowa-2011-HF2455-Enrolled.html
House
File
2455
AN
ACT
RELATING
TO
THE
EXAMINATIONS
OF
THE
FINANCES
OF
CERTAIN
CITIES
AND
INCLUDING
EFFECTIVE
DATE
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
11.6,
subsection
1,
paragraph
a,
Code
Supplement
2011,
is
amended
to
read
as
follows:
a.
(1)
Except
for
entities
organized
under
chapter
28E
having
gross
receipts
of
one
hundred
thousand
dollars
or
less
in
a
fiscal
year,
the
financial
condition
and
transactions
of
all
government
subdivisions
shall
be
audited
at
least
once
each
year
annually
,
except
that
cities
having
a
population
of
seven
hundred
or
more
but
less
than
two
thousand
shall
be
examined
at
least
once
every
four
years
and
budgeted
gross
expenditures
of
one
million
dollars
or
more
in
a
fiscal
year
shall
be
subject
to
a
required
fiscal
year
examination
for
that
fiscal
year
according
to
procedures
established
by
the
office
of
auditor
House
File
2455,
p.
2
of
state
,
and
cities
having
a
population
of
less
than
seven
hundred
two
thousand
and
budgeted
gross
expenditures
of
less
than
one
million
dollars
in
a
fiscal
year
shall
be
subject
to
periodic
examination
by
the
auditor
of
state
according
to
procedures
established
by
the
auditor
of
state,
and
may
be
examined
as
otherwise
provided
in
this
section
.
However,
a
city
having
a
population
of
less
than
two
thousand
and
budgeted
gross
expenditures
of
one
million
dollars
or
more
in
a
fiscal
year
shall
not
be
subject
to
a
required
fiscal
year
examination
until
the
city
has
two
consecutive
years
of
budgeted
gross
expenditures
of
one
million
dollars
or
more
in
both
fiscal
years,
and
such
examination
shall
be
conducted
during
the
second
of
such
fiscal
years.
A
city
meeting
the
requirements
for
a
periodic
examination
shall
be
subject
to
an
examination
under
this
section
at
least
once
during
an
eight-year
period
at
a
time
determined
by
the
auditor
of
state.
The
audit
of
school
districts
shall
include
an
audit
of
all
school
funds
including
categorical
funding
provided
by
the
state,
the
certified
annual
financial
report,
the
certified
enrollment
as
provided
in
section
257.6
,
supplementary
weighting
as
provided
in
section
257.11
,
and
the
revenues
and
expenditures
of
any
nonprofit
school
organization
established
pursuant
to
section
279.62
.
Differences
in
certified
enrollment
shall
be
reported
to
the
department
of
management.
The
audit
of
school
districts
shall
include
at
a
minimum
a
determination
that
the
laws
of
the
state
are
being
followed,
that
categorical
funding
is
not
used
to
supplant
other
funding
except
as
otherwise
provided,
that
supplementary
weighting
is
pursuant
to
an
eligible
sharing
condition,
and
that
postsecondary
courses
provided
in
accordance
with
section
257.11
and
chapter
261E
supplement,
rather
than
supplant,
school
district
courses.
The
audit
of
a
city
that
owns
or
operates
a
municipal
utility
providing
local
exchange
services
pursuant
to
chapter
476
shall
include
performing
tests
of
the
city’s
compliance
with
section
388.10
.
The
audit
of
a
city
that
owns
or
operates
a
municipal
utility
providing
telecommunications
services
pursuant
to
section
388.10
shall
include
performing
tests
of
the
city’s
compliance
with
section
388.10
.
(2)
Subject
to
the
exceptions
and
requirements
of
subsections
2
and
3,
and
subsection
4
,
paragraph
“a”
,
subparagraph
(3),
audits
or
required
fiscal
year
examinations
shall
be
made
as
determined
by
the
governmental
subdivision
either
by
the
auditor
of
state
or
by
certified
public
House
File
2455,
p.
3
accountants,
certified
in
the
state
of
Iowa,
and
they
shall
be
paid
from
the
proper
public
funds
of
the
governmental
subdivision.
However,
a
periodic
examination
of
a
city
shall
be
conducted
by
the
auditor
of
state
or
by
a
certified
public
accountant
employed
by
the
auditor
of
state
pursuant
to
section
11.32,
and
shall
be
paid
from
examination
fees
collected
pursuant
to
subsection
10A.
Sec.
2.
Section
11.6,
Code
Supplement
2011,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
10A.
a.
The
auditor
of
state
shall
adopt
rules
in
accordance
with
chapter
17A
to
establish
and
collect
a
periodic
examination
fee
from
cities
that
are
not
required
to
have
an
audit
or
required
fiscal
year
examination
conducted
pursuant
to
subsection
1
during
a
fiscal
year.
Such
fees
are
due
on
March
31
each
year.
The
auditor
of
state
shall
base
the
fees
on
a
sliding
scale,
based
on
the
city’s
budgeted
gross
expenditures,
to
produce
total
revenue
of
not
more
than
three
hundred
seventy-five
thousand
dollars
for
each
fiscal
year.
However,
cities
that
pay
a
filing
fee
for
an
audit
or
examination
pursuant
to
subsection
10
during
the
fiscal
year
are
not
required
to
pay
the
examination
fee.
The
funds
collected
shall
be
maintained
in
a
segregated
account
for
use
by
the
office
of
the
auditor
of
state
in
performing
periodic
examinations
conducted
pursuant
to
subsection
1.
However,
if
the
fees
collected
in
one
fiscal
year
exceed
three
hundred
seventy-five
thousand
dollars,
the
auditor
of
state
shall
apply
the
excess
funds
to
provide
training
to
city
officials
on
municipal
financial
management
or
shall
contract
with
a
qualified
organization
to
provide
such
training.
Notwithstanding
section
8.33,
any
fees
collected
by
the
auditor
of
state
for
these
purposes
that
remain
unexpended
at
the
end
of
the
fiscal
year
shall
not
revert
to
the
general
fund
of
the
state
or
any
other
fund
but
shall
remain
available
for
use
for
the
following
fiscal
year
for
the
purposes
authorized
in
this
subsection.
b.
The
auditor
of
state
shall
provide
an
annual
report
by
January
15
of
each
year
to
the
general
assembly’s
standing
committees
on
government
oversight,
advising
the
general
assembly
on
the
status
of
the
account
created
in
this
subsection
and
on
the
status
of
the
required
fiscal
year
examinations
and
periodic
examinations
of
cities.
Sec.
3.
IMPLEMENTATION
OF
ACT.
Section
25B.2,
subsection
3,
shall
not
apply
to
this
Act.
House
File
2455,
p.
4
Sec.
4.
EFFECTIVE
DATE.
This
Act
takes
effect
July
1,
2013.
______________________________
KRAIG
PAULSEN
Speaker
of
the
House
______________________________
JOHN
P.
KIBBIE
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2455,
Eighty-fourth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Chief
Clerk
of
the
House
Approved
_______________,
2012
______________________________
TERRY
E.
BRANSTAD
Governor
