This bill amends Section 11.6 of the Iowa Code to modify the periodic examination fees that the auditor of state can establish and collect from cities not required to undergo an audit or fiscal year examination. The current cap on total revenue from these fees is increased from $375,000 to $600,000. Additionally, the auditor of state is required to base the periodic examination fees on a sliding scale according to the city's budgeted gross expenditures. Cities that pay a filing fee for an audit or examination during the fiscal year are exempt from the periodic examination fee.

Furthermore, if the fees collected exceed the new cap of $600,000, the auditor of state must use the excess funds to provide training to city officials on municipal financial management or contract with a qualified organization for such training. The bill ensures that any unexpended fees at the end of the fiscal year will not revert to the general fund but will remain available for the following fiscal year for the authorized purposes. This legislation will apply to fees collected in fiscal years beginning on or after July 1, 2026.

Statutes affected:
Introduced: 11.6