This bill mandates the legislative auditor to provide an annual report to the legislature regarding the implementation of internal control and fiscal management recommendations by state agencies. Specifically, it adds a new subdivision to Minnesota Statutes 2024, section 3.971, requiring the legislative auditor to submit a report by February 1 each year to the chairs and ranking minority members of the relevant legislative committees. This report will detail whether the audited entities have acted on recommendations made in financial audits, program evaluations, or special reviews over the past five years. Additionally, the committee chair must allow the legislative auditor to present the report's findings in a public hearing before any legislation appropriating funds to the entity is considered.

Furthermore, the bill amends Minnesota Statutes 2024, section 16A.057, subdivision 5, to require the commissioner to review audit reports from the Office of the Legislative Auditor and address any internal control issues identified. The commissioner must also submit a report to the legislative auditor by September 1 each year, detailing the status of implementation for all recommendations made in auditor reports over the previous five years. This report must specifically list any recommendations that have not been implemented, along with the rationale for those decisions.

Statutes affected:
Introduction: 3.971, 16A.057