summary
Introduced
03/10/2025
03/10/2025
In Committee
03/10/2025
03/10/2025
Crossed Over
Passed
Dead
Introduced Session
94th Legislature 2025-2026
Bill Summary
A bill for an act relating to local government; raising the revenue threshold requiring cities to perform annual audits; amending Minnesota Statutes 2024, section 412.591, subdivision 3.
AI Summary
This bill modifies the requirements for city financial audits by raising the revenue threshold that determines audit frequency. Currently, cities with combined clerk and treasurer offices must have an annual audit if their annual revenue exceeds $150,000. The bill increases this threshold to $500,000 starting in 2025, with the threshold to be adjusted annually for inflation using the implicit price deflator for state and local expenditures published by the U.S. Department of Commerce. For cities with revenue at or below this threshold, the bill allows for less frequent audits, requiring a comprehensive financial audit by the state auditor or a certified public accountant only once every five years, with the specific audit year to be randomly selected. This change means smaller cities with lower annual revenues will have more flexibility in managing their financial reporting requirements, potentially reducing their administrative burden and audit costs. The bill will take effect on August 1, 2025, and will apply to audits performed for the 2026 fiscal year and beyond.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Hearing (13:00:00 4/2/2025 ) (on 04/02/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
---|---|
State Bill Page | https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2083&ssn=0&y=2025 |
BillText | https://www.revisor.mn.gov/bills/text.php?number=HF2083&version=0&session=ls94&session_year=2025&session_number=0&format=pdf |
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