HB256 Summary

• Establishes the Municipal Audit Clarification Act, amending Section 11-43-85 of the Alabama Code to clarify municipal audit requirements based on annual expenditures.

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

• Municipalities with annual expenditures between $100,000 and $300,000 must conduct a biennial audit covering all fiscal years since the preceding audit.

• Municipalities with annual expenditures under $100,000 may elect to provide an annual report complying with Department of Examiners of Public Accounts procedures in lieu of a biennial audit, including proof of cash, bank balances, cash receipts and disbursements, state law compliance, agreed upon procedures, and motor fuel excise tax reports.

• All audit reports and annual reports must be submitted to the Department of Examiners of Public Accounts and presented to the city council at its first meeting after completion.