IA SF2245

Certified public accountants and governmental subdivisions must cooperate with the State Auditor to establish investigation procedures when suspected embezzlement, theft, or other significant financial irregularities involving public funds are reported.

The State Auditor has authority to determine whether to conduct further investigative procedures after receiving notification of suspected misuse of public funds.

Governmental subdivisions are required to reimburse the State Auditor for all costs incurred during investigations into suspected financial misconduct.

Reimbursement costs are capped at the amount of public funds determined by the auditor to have been misused.

Affected governmental subdivisions include cities, counties, county and memorial hospitals, community colleges, area education agencies, school districts, and entities organized under Code chapter 28E.