Legislative Audit Committee. Currently, a local government must
obtain an audit of its financial statements for each fiscal year or obtain approval from the state auditor for an exemption if they meet certain requirements. A local government with total revenues and expenditures that are each less than or equal to $100,000 during a fiscal year may complete an application for exemption from audit. A local government seeking this exemption must provide the state auditor with an application prepared by a person who is skilled in government accounting. A local government with total revenues or expenditures that are over $100,000 and no more than $750,000 during a fiscal year may also complete an application for exemption from audit. A local government seeking this exemption must provide the state auditor with an application that is prepared by an independent accountant with knowledge of government accounting.
The bill changes these 2 thresholds for any fiscal year commencing
on or after January 1, 2025. First, the bill changes the $100,000 threshold to $200,000. Second, the bill changes the $750,000 threshold to $1,000,000. The bill would provide consistency with federal requirements and align statutory thresholds with current inflationary values.
