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S.F. No. 237 - State Auditor Enterprise Fund Establishment
 
Author: Senator Sandra L. Pappas
 
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
 
Date: March 18, 2013



 

Counties are required to pay for examinations conducted by the state auditor.  Under current law, the counties' payments are deposited into the general fund, and appropriations to the State Auditor are made from the general fund.  This bill establishes a State Auditor Enterprise Fund to receive examination fees, and establishes an annual appropriation from the State Auditor Enterprise Fund to the State Auditor.  

Section 1 [Examination of Counties; Cost, Fees] changes the fund into which fees paid by counties for examination are deposited.  Under current law, fees paid by counties are deposited into and credited to the general fund; this section provides for those fees to be deposited into and credited to the State Auditor Enterprise Fund, established later in this bill.

This section permits the State Auditor to bill all counties periodically for examination costs and expenses.  This is a change from current law that permits the State Auditor to monthly bill counties having a population greater than 200,000.

Section 2 [Billings by State Auditor] changes the permitted period for the State Auditor to bill political subdivisions for the costs and expenses of examination from monthly to periodically.

This section changes the fund to be credited for these payments from the general fund to the State Auditor Enterprise Fund.

Section 3 [State Auditor Enterprise Fund] creates a new section describing how the funds credited to the State Auditor Enterprise Fund can be expended and how a schedule of charges may be set.   Many provisions in subdivisions 2 and 3 are the same as, or effectively the same as, those in current law that are repealed later in this act.

Subdivision 1 [State Auditor Enterprise Fund] establishes a State Auditor Enterprise Fund in the state treasury, and requires that all amounts received for costs and expenses of examinations by the State Auditor be credited to this fund.  This section annually appropriates the amounts credited to the fund to the State Auditor to pay the costs and expenses related to examinations performed, including salaries, office overhead, equipment, authorized contracts, and other expenses.

Subdivision 2 [Contract with private parties; equipment acquisitions] permits the State Auditor to contract with a private entity for accounting and technical services when full-time personnel are not available, and specifies that the acquisition of equipment may include duplicating equipment to be used in producing reports issued by the State Auditor. 

Subdivision 3 [Schedule of charges] permits the State Auditor to adjust the schedule of charges for examinations such that the charges are sufficient to cover all costs of examinations and that the aggregate charges collected are sufficient to pay all salaries and expenses, including the charges for the use of equipment used in connection with reimbursable examinations and the cost of contracting for accounting and other technical services.  This section requires that the schedule of charges be based on an estimate of the cost of performing reimbursable examinations.  This section permits the State Auditor to allocate a proportionate part of the total costs to an hourly or daily charge for each person or class of persons engaged in performing an examination, and requires that the schedule of charges reflects an equitable charge for the expenses incurred in performing an examination.  This section requires the State Auditor to review and adjust the schedule of charges at least annually.  All schedules of charges must be approved by the Commissioner of Management and Budget before the charges are adopted to ensure that the amount collected is sufficient to pay all the costs connected with the examinations performed during a fiscal year.

Section 4 [Enforcement of Reporting Requirements] changes a cross-reference from a section repealed in this act to a new section of law in this act.

Section 5 [Repealer] repeals a section of statutes that provided for use of the general fund to pay expenses associated with examinations and set parameters for setting a schedule of charges for examinations.  Many of the provisions of this section are the same as, or effectively the same as, new provisions established in this act.

SJJ/rdr

 
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