HB452 Summary

• Creates the Chestnut Accountability Municipal Audit Clarification Act, amending Section 11-43-85 of the Code of Alabama 1975 regarding municipal audit requirements.

• Municipalities with annual expenditures of $300,000 or more must conduct annual audits of financial affairs and transactions by an independent public accountant.

• Municipalities with annual expenditures between $100,000 and $299,999 must conduct biennial audits by an independent public accountant covering all fiscal years since the preceding audit.

• Municipalities with annual expenditures less than $100,000 may elect to submit an annual report complying with Department of Examiners of Public Accounts procedures in lieu of a biennial audit, including proof of cash reconciliation, bank balances, cash receipts and disbursements, and state law compliance.

• All audits must be conducted in accordance with generally accepted auditing standards and provided to the Department of Examiners of Public Accounts; audit reports become effective the first day of the third month following passage and gubernatorial approval.