Bill Text: MN SF237 | 2013-2014 | 88th Legislature | Introduced
Bill Title: State auditor enterprise fund establishment
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-02-13 - Comm report: To pass and re-referred to Finance [SF237 Detail]
Download: Minnesota-2013-SF237-Introduced.html
1.2relating to state government; creating a state auditor enterprise fund;
1.3appropriating money;amending Minnesota Statutes 2012, sections 6.48; 6.56,
1.4subdivision 2; 471.699; proposing coding for new law in Minnesota Statutes,
1.5chapter 6; repealing Minnesota Statutes 2012, section 6.58.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 6.48, is amended to read:
1.86.48 EXAMINATION OF COUNTIES; COST, FEES.
1.9All the powers and duties conferred and imposed upon the state auditor shall be
1.10exercised and performed by the state auditor in respect to the offices, institutions, public
1.11property, and improvements of several counties of the state. At least once in each year,
1.12if funds and personnel permit, the state auditor may visit, without previous notice, each
1.13county and make a thorough examination of all accounts and records relating to the
1.14receipt and disbursement of the public funds and the custody of the public funds and
1.15other property. If the audit is performed by a private certified public accountant, the state
1.16auditor may require additional information from the private certified public accountant as
1.17the state auditor deems in the public interest. The state auditor may accept the audit or
1.18make additional examinations as the state auditor deems to be in the public interest. The
1.19state auditor shall prescribe and install systems of accounts and financial reports that shall
1.20be uniform, so far as practicable, for the same class of offices. A copy of the report of
1.21such examination shall be filed and be subject to public inspection in the office of the state
1.22auditor and another copy in the office of the auditor of the county thus examined. The state
1.23auditor may accept the records and audit, or any part thereof, of the Department of Human
1.24Services in lieu of examination of the county social welfare funds, if such audit has been
2.1made within any period covered by the state auditor's audit of the other records of the
2.2county. If any such examination shall disclose malfeasance, misfeasance, or nonfeasance
2.3in any office of such county, such report shall be filed with the county attorney of the
2.4county, and the county attorney shall institute such civil and criminal proceedings as the
2.5law and the protection of the public interests shall require.
2.6The county receiving any examination shall pay to thestate general fund,
2.7notwithstanding the provisions of section
16A.125, state auditor enterprise fund the total
2.8cost and expenses of such examinations, including the salaries paid to the examiners
2.9while actually engaged in making such examination. The state auditor on deeming it
2.10advisable may bill counties, having a population of 200,000 or over, monthly periodically
2.11 for services rendered and the officials responsible for approving and paying claims shall
2.12cause said bill to be promptly paid. Thegeneral state auditor enterprise fund shall be
2.13credited with all collections made for any such examinations.
2.14 Sec. 2. Minnesota Statutes 2012, section 6.56, subdivision 2, is amended to read:
2.15 Subd. 2. Billings by state auditor. Upon the examination of the books, records,
2.16accounts, and affairs of any political subdivision, as provided by law, such political
2.17subdivision shall be liable to the state for the total cost and expenses of such examination,
2.18including the salaries paid to the examiners while actually engaged in making such
2.19examination. The state auditor may bill such political subdivisionmonthly periodically
2.20 for service rendered and the officials responsible for approving and paying claims are
2.21authorized to pay said bill promptly. Said payments shall be without prejudice to any
2.22defense against said claims that may exist or be asserted. Thegeneral state auditor
2.23enterprise fund shall be credited with all collections made for any such examinations,
2.24including interest payments made pursuant to subdivision 3.
2.25 Sec. 3. [6.581] STATE AUDITOR ENTERPRISE FUND.
2.26 Subdivision 1. State auditor enterprise fund. A state auditor enterprise fund
2.27is established in the state treasury. All amounts received for the costs and expenses of
2.28examinations performed under this chapter shall be credited to the fund. Amounts credited
2.29to the fund are annually appropriated to the state auditor to pay the costs and expenses
2.30related to the examinations performed, including, but not limited to, salaries, office
2.31overhead, equipment, authorized contracts, and other expenses.
2.32 Subd. 2. Contract with private parties; equipment acquisition. When full-time
2.33personnel are not available, the state auditor may contract with a private entity for
2.34accounting and other technical services. Notwithstanding any law to the contrary, the
3.1acquisition of equipment may include duplicating equipment to be used in producing the
3.2reports issued by the Office of the State Auditor.
3.3 Subd. 3. Schedule of charges. The state auditor may adjust the schedule of charges
3.4for the examinations performed so that the charges are sufficient to cover all costs of the
3.5examinations performed and that the aggregate charges collected are sufficient to pay all
3.6salaries and other expenses, including the charges for the use of the equipment used in
3.7connection with the reimbursable examinations performed, and the cost of contracting for
3.8accounting and other technical services. The schedule of charges shall be based on an
3.9estimate of the cost of performing reimbursable examinations including, but not limited
3.10to, salaries, office overhead, equipment, authorized contracts, and other expenses. The
3.11state auditor may allocate a proportionate part of the total costs to an hourly or daily
3.12charge for each person or class of persons engaged in the performance of an examination.
3.13The schedule of charges shall reflect an equitable charge for the expenses incurred in the
3.14performance of any given examination. The state auditor shall review and adjust the
3.15schedule of charges for the examinations performed at least annually. All schedules of
3.16charges must be approved by the commissioner of management and budget before the
3.17charges are adopted to ensure that the amount collected is sufficient to pay all the costs
3.18connected with the examinations performed during the fiscal year.
3.19 Sec. 4. Minnesota Statutes 2012, section 471.699, is amended to read:
3.20471.699 ENFORCEMENT OF REPORTING REQUIREMENTS.
3.21Failure of a city to timely file a statement or report under section471.697 or
471.698
3.22shall, in addition to any other penalties provided by law, authorize the state auditor to send
3.23full-time personnel to the city or to contract with private persons, firms, or corporations
3.24pursuant to section6.58
3.25report. The expenses related to the completion and filing of the financial statement or
3.26report shall be charged to the city. Upon failure by the city to pay the charge within 30
3.27days of billing, the state auditor shall so certify to the commissioner of management and
3.28budget who shall forward the amount certified to the general fund and deduct the amount
3.29from any state funds due to the city under any shared taxes or aids. The state auditor's
3.30annual report on cities shall include a listing of all cities failing to file a statement or report.
3.31 Sec. 5. REPEALER.
3.32Minnesota Statutes 2012, section 6.58, is repealed.
1.3appropriating money;amending Minnesota Statutes 2012, sections 6.48; 6.56,
1.4subdivision 2; 471.699; proposing coding for new law in Minnesota Statutes,
1.5chapter 6; repealing Minnesota Statutes 2012, section 6.58.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 6.48, is amended to read:
1.86.48 EXAMINATION OF COUNTIES; COST, FEES.
1.9All the powers and duties conferred and imposed upon the state auditor shall be
1.10exercised and performed by the state auditor in respect to the offices, institutions, public
1.11property, and improvements of several counties of the state. At least once in each year,
1.12if funds and personnel permit, the state auditor may visit, without previous notice, each
1.13county and make a thorough examination of all accounts and records relating to the
1.14receipt and disbursement of the public funds and the custody of the public funds and
1.15other property. If the audit is performed by a private certified public accountant, the state
1.16auditor may require additional information from the private certified public accountant as
1.17the state auditor deems in the public interest. The state auditor may accept the audit or
1.18make additional examinations as the state auditor deems to be in the public interest. The
1.19state auditor shall prescribe and install systems of accounts and financial reports that shall
1.20be uniform, so far as practicable, for the same class of offices. A copy of the report of
1.21such examination shall be filed and be subject to public inspection in the office of the state
1.22auditor and another copy in the office of the auditor of the county thus examined. The state
1.23auditor may accept the records and audit, or any part thereof, of the Department of Human
1.24Services in lieu of examination of the county social welfare funds, if such audit has been
2.1made within any period covered by the state auditor's audit of the other records of the
2.2county. If any such examination shall disclose malfeasance, misfeasance, or nonfeasance
2.3in any office of such county, such report shall be filed with the county attorney of the
2.4county, and the county attorney shall institute such civil and criminal proceedings as the
2.5law and the protection of the public interests shall require.
2.6The county receiving any examination shall pay to the
2.7
2.8cost and expenses of such examinations, including the salaries paid to the examiners
2.9while actually engaged in making such examination. The state auditor on deeming it
2.10advisable may bill counties
2.11 for services rendered and the officials responsible for approving and paying claims shall
2.12cause said bill to be promptly paid. The
2.13credited with all collections made for any such examinations.
2.14 Sec. 2. Minnesota Statutes 2012, section 6.56, subdivision 2, is amended to read:
2.15 Subd. 2. Billings by state auditor. Upon the examination of the books, records,
2.16accounts, and affairs of any political subdivision, as provided by law, such political
2.17subdivision shall be liable to the state for the total cost and expenses of such examination,
2.18including the salaries paid to the examiners while actually engaged in making such
2.19examination. The state auditor may bill such political subdivision
2.20 for service rendered and the officials responsible for approving and paying claims are
2.21authorized to pay said bill promptly. Said payments shall be without prejudice to any
2.22defense against said claims that may exist or be asserted. The
2.23enterprise fund shall be credited with all collections made for any such examinations,
2.24including interest payments made pursuant to subdivision 3.
2.25 Sec. 3. [6.581] STATE AUDITOR ENTERPRISE FUND.
2.26 Subdivision 1. State auditor enterprise fund. A state auditor enterprise fund
2.27is established in the state treasury. All amounts received for the costs and expenses of
2.28examinations performed under this chapter shall be credited to the fund. Amounts credited
2.29to the fund are annually appropriated to the state auditor to pay the costs and expenses
2.30related to the examinations performed, including, but not limited to, salaries, office
2.31overhead, equipment, authorized contracts, and other expenses.
2.32 Subd. 2. Contract with private parties; equipment acquisition. When full-time
2.33personnel are not available, the state auditor may contract with a private entity for
2.34accounting and other technical services. Notwithstanding any law to the contrary, the
3.1acquisition of equipment may include duplicating equipment to be used in producing the
3.2reports issued by the Office of the State Auditor.
3.3 Subd. 3. Schedule of charges. The state auditor may adjust the schedule of charges
3.4for the examinations performed so that the charges are sufficient to cover all costs of the
3.5examinations performed and that the aggregate charges collected are sufficient to pay all
3.6salaries and other expenses, including the charges for the use of the equipment used in
3.7connection with the reimbursable examinations performed, and the cost of contracting for
3.8accounting and other technical services. The schedule of charges shall be based on an
3.9estimate of the cost of performing reimbursable examinations including, but not limited
3.10to, salaries, office overhead, equipment, authorized contracts, and other expenses. The
3.11state auditor may allocate a proportionate part of the total costs to an hourly or daily
3.12charge for each person or class of persons engaged in the performance of an examination.
3.13The schedule of charges shall reflect an equitable charge for the expenses incurred in the
3.14performance of any given examination. The state auditor shall review and adjust the
3.15schedule of charges for the examinations performed at least annually. All schedules of
3.16charges must be approved by the commissioner of management and budget before the
3.17charges are adopted to ensure that the amount collected is sufficient to pay all the costs
3.18connected with the examinations performed during the fiscal year.
3.19 Sec. 4. Minnesota Statutes 2012, section 471.699, is amended to read:
3.20471.699 ENFORCEMENT OF REPORTING REQUIREMENTS.
3.21Failure of a city to timely file a statement or report under section
3.22shall, in addition to any other penalties provided by law, authorize the state auditor to send
3.23full-time personnel to the city or to contract with private persons, firms, or corporations
3.24pursuant to section
3.25report. The expenses related to the completion and filing of the financial statement or
3.26report shall be charged to the city. Upon failure by the city to pay the charge within 30
3.27days of billing, the state auditor shall so certify to the commissioner of management and
3.28budget who shall forward the amount certified to the general fund and deduct the amount
3.29from any state funds due to the city under any shared taxes or aids. The state auditor's
3.30annual report on cities shall include a listing of all cities failing to file a statement or report.
3.31 Sec. 5. REPEALER.
3.32Minnesota Statutes 2012, section 6.58, is repealed.
