Relating to audits of governmental subdivisions by the state auditor concerning suspected embezzlement, theft, or other significant financial irregularities

This bill relates to audits of governmental subdivisions concerning suspected embezzlement, theft, or other significant financial irregularities. The bill provides that upon notification to the auditor of state by a certified public accountant and a governmental subdivision of any misuse of public funds involving any suspected embezzlement, theft, or other significant financial irregularities of a governmental subdivision of this state, the certified public accountant and the governmental subdivision shall cooperate with the auditor of state to establish procedures to investigate the suspected embezzlement, theft, or other significant financial irregularities. The auditor of state shall determine if the auditor of state will perform further procedures. The governmental subdivision shall reimburse the auditor of state for any actions taken by the auditor of state to investigate the reported embezzlement, theft, or other significant financial irregularities. The costs assessed shall not exceed the amount of the public funds misused as determined by the auditor.1 as cities and administrative agencies established by cities, hospitals or health care facilities established by a city, counties, county hospitals organized under Code chapters 347 and 347A, memorial hospitals organized under Code chapter 37, entities organized under Code chapter 28E, community colleges, area education agencies, and school districts.