HB256 Alabama 2022 Session

Under existing law, the mayor of a city or town, at least once a year, is required to appoint an independent public accountant or the Department of Examiners of Public Accounts to conduct an examination of all books and accounts of the city or town since the preceding examination and to make a full report of the audit to the city council upon completion of the report

In lieu of the existing requirements, this bill would require the mayor or city manager of a municipality with certain annual expenditures to cause to be conducted an annual or biennial audit of the financial affairs and transactions of the municipality and to make an annual or biennial report of the audit to the city council upon completion of the report

This bill would also permit the mayor or city manager of a municipality with certain annual expenditures to provide a report of agreed upon procedures in lieu of a biennial audit report

Relating to municipalities, to amend Section 11-43-85, Code of Alabama 1975, and to create the Municipal Audit Clarification Act, to require the mayor or city manager of a municipality with certain annual expenditures to cause to be conducted an annual or biennial audit of the financial affairs and transactions of the municipality and to make an annual or biennial report of the audit to the city council upon completion of the report; and to permit the mayor or city manager of a municipality with certain annual expenditures to provide a report of agreed upon procedures in lieu of a biennial audit report.