HB5011 Summary

• Amends the Governmental Account Audit Act to establish a two-fiscal-year audit cycle for governmental units starting fiscal year 2026, replacing the current annual audit requirement, except when the latest audit contains an adverse or disclaimer of opinion.

• Increases the revenue threshold for small governmental units from $850,000 to $1,400,000 (adjusted annually by Consumer Price Index-U) for fiscal years 2026 and after, allowing these units to file annual financial reports instead of full audits.

• Small governmental units under the new $1,400,000 threshold may choose between: (i) audits once every 4 years with annual financial reports, or (ii) annual financial reports approved by a three-fifths majority vote of the governing board.

• Updates the Township Code to align audit requirements with the new revenue threshold of $1,400,000 (adjusted annually by CPI-U), requiring certified public accountant audits for townships exceeding this amount.

• Requires all financial reports and audit reports to include the name of the purchasing agent or person overseeing competitively bid contracts and mandates electronic filing with the Comptroller.