1.1                          A bill for an act 
  1.2             relating to local government; authorizing examinations 
  1.3             of the accounts and records of counties and cities by 
  1.4             certified public accountants; amending Minnesota 
  1.5             Statutes 1994, sections 6.48; and 6.49. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 6.48, is 
  1.8   amended to read: 
  1.9      6.48 [EXAMINATION OF COUNTIES; COST, FEES.] 
  1.10     All the powers and duties conferred and imposed upon the 
  1.11  state auditor shall be exercised and performed by the state 
  1.12  auditor in respect to the offices, institutions, public 
  1.13  property, and improvements of several counties of the state.  At 
  1.14  least once in each year, if funds and personnel permit, the 
  1.15  state auditor shall visit, without previous notice, each county 
  1.16  and make a thorough examination of all accounts and records 
  1.17  relating to the receipt and disbursement of the public funds and 
  1.18  the custody of the public funds, including the game and fish 
  1.19  funds, and other property.  The state auditor shall prescribe 
  1.20  and install systems of accounts and financial reports that shall 
  1.21  be uniform, so far as practicable, for the same class of 
  1.22  offices.  A copy of the report of such examination shall be 
  1.23  filed and be subject to public inspection in the office of the 
  1.24  state auditor and another copy in the office of the auditor of 
  1.25  the county thus examined.  The state auditor may accept the 
  2.1   records and audit, or any part thereof, of the department of 
  2.2   human services in lieu of examination of the county social 
  2.3   welfare funds, if such audit has been made within any period 
  2.4   covered by the state auditor's audit of the other records of the 
  2.5   county.  If any such examination shall disclose malfeasance, 
  2.6   misfeasance, or nonfeasance in any office of such county, such 
  2.7   report shall be filed with the county attorney of the county, 
  2.8   and the county attorney shall institute such civil and criminal 
  2.9   proceedings as the law and the protection of the public 
  2.10  interests shall require.  
  2.11     A county may employ a certified public accountant instead 
  2.12  of a state auditor to make the examination required by this 
  2.13  section.  The certified public accountant must be an independent 
  2.14  certified public accountant or a certified public accounting 
  2.15  firm licensed by the board of accountancy under sections 326.165 
  2.16  to 326.229.  Consistent with the other requirements of this 
  2.17  section, the state auditor may prescribe the methods and 
  2.18  conditions for the examination by a certified public accountant. 
  2.19     The county receiving such examination, and the division of 
  2.20  game and fish of the department of natural resources of the 
  2.21  state of Minnesota, in the case of the examination of the game 
  2.22  and fish funds, shall pay to the state general fund, 
  2.23  notwithstanding the provisions of section 16A.125, the total 
  2.24  cost and expenses of such examinations, including the salaries 
  2.25  paid to the examiners while actually engaged in making such 
  2.26  examination.  The state auditor on deeming it advisable may bill 
  2.27  counties, having a population of 200,000 or over, monthly for 
  2.28  services rendered and the officials responsible for approving 
  2.29  and paying claims shall cause said bill to be promptly paid.  
  2.30  The general fund shall be credited with all collections made for 
  2.31  any such examinations.  
  2.32     Sec. 2.  Minnesota Statutes 1994, section 6.49, is amended 
  2.33  to read: 
  2.34     6.49 [CITIES OF FIRST CLASS.] 
  2.35     All powers and duties conferred and imposed upon the state 
  2.36  auditor with respect to state and county officers, institutions, 
  3.1   property, and improvements are hereby extended to cities of the 
  3.2   first class.  Copies of the written report of the state 
  3.3   auditor or public accountant on the financial condition and 
  3.4   accounts of such city shall be filed in the state auditor's 
  3.5   office, with the mayor, city council, and city comptroller 
  3.6   thereof, and with the city commissioners, if such city have such 
  3.7   officers.  If such report disclose malfeasance, misfeasance, or 
  3.8   nonfeasance in office, copies thereof shall be filed with the 
  3.9   city attorney thereof and with the county attorney of the county 
  3.10  in which such city is located, and these officials of the law 
  3.11  shall institute such proceedings, civil or criminal, as the law 
  3.12  and the public interest require.  
  3.13     If the report is completed by the state auditor, the state 
  3.14  auditor may bill said cities monthly for services rendered and 
  3.15  the officials responsible for approving and paying claims shall 
  3.16  cause said bill to be promptly paid.  
  3.17     If a city of the first class contracts with public 
  3.18  accountants to audit, examine, and report upon the books and 
  3.19  records of the city, the public accountant must be an 
  3.20  independent certified public accountant or a certified public 
  3.21  accounting firm licensed by the board of accountancy under 
  3.22  sections 326.165 to 326.229.  Consistent with other requirements 
  3.23  of this section, the state auditor may prescribe the methods and 
  3.24  conditions for the examination by the certified public 
  3.25  accountant.