The bill amends Section 11-43-85 of the Code of Alabama 1975, known as the Municipal Audit Clarification Act, to revise the annual expenditure thresholds that determine the requirements for municipal audits. Specifically, the threshold for municipalities requiring an annual audit is increased from three five hundred thousand dollars ($300,000) ($500,000) or more. For municipalities with expenditures below this threshold, a biennial audit is mandated, while those with expenditures under one three hundred thousand dollars ($100,000) ($300,000) may opt for an annual report instead of a biennial audit, provided it meets specific reporting requirements. The bill also stipulates that all municipal audits must adhere to generally accepted auditing standards and be submitted to the Department of Examiners of Public Accounts. Additionally, the municipal audit report must be presented to the city council at its first meeting following the report's completion. This act is set to take effect on October 1, 2026.

Statutes affected:
Introduced: 11-43-85
Enrolled: 11-43-85