SAINT PAUL, MN— Representative Sarah Anderson (R-Plymouth), Chair of the House State Government Finance Committee, released the following statement regarding the lawsuit filed today by the Office of the State Auditor (OSA) against the State of Minnesota and the counties of Becker, Ramsey and Wright.
"Just one day after the nonpartisan Office of the Legislative Auditor's report was released on county audits which definitively stated that it is within the legislature's power to define the duties and authority of the Office of the State Auditor, State Auditor Rebecca Otto has decided to waste taxpayer dollars to file a frivolous lawsuit against the State of Minnesota and a select group of counties," said Rep. Anderson. "The legislature acted in a bipartisan manner last session to expand the options counties have for their audits to save local governments and taxpayers money, as well as expedite the audit process. This lawsuit has no merit, and I am disappointed it will come at the expense of hardworking Minnesota taxpayers."
Last session, the legislature passed bipartisan legislation signed into law by Governor Dayton that gave counties the option to either conduct an audit with the OSA or hire an outside Certified Public Accountant (CPA) firm to conduct the audit. Previously, a county had to receive permission from the OSA to hire a CPA firm for their county audit, which was granted to 28 Minnesota counties.
On February 3, 2016, the nonpartisan Office of the Legislative Auditor released their report on county audits done by the OSA. Here are several key highlights from that report:
• The Minnesota State Legislature has always defined the duties and authority of the State Auditor
• For similar counties, it was found that the OSA charged more than CPA firms for an annual audit
• 34 percent of counties stated they were not satisfied with the cost of OSA audits
• The 2015 law change allows for price competition while still giving the OSA significant authority to continue to ensure that all audits meet certain standards and to hold counties accountable in how they spend public dollars
• 32 percent of counties said that audits done by OSA were not timely, and many expressed frustrations that the reports came too late to be useful in saving taxpayer dollars for their annual budget process
• Many county officials expressed serious concerns about the OSA trying to force counties into 3-year contracts with their office, as well as the threats of potential litigation for not signing those contracts
• Even with this law change, the OSA still has many other duties beyond county audits and will still maintain significant authority over all county audits
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Rep. Anderson is the state representative for House District 44A, which includes Plymouth.