Bill > HF2083

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.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2083&ssn=0&y=2025