A Bill for an Act
Page 1, Line 101Concerning local government audit exemption thresholds.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/.)
Legislative Audit Committee. Currently, a local government must obtain an audit of its financial statements for each fiscal year or obtain approval from the state auditor for an exemption if they meet certain requirements. A local government with total revenues and expenditures that are each less than or equal to $100,000 during a fiscal year may complete an application for exemption from audit. A local government seeking this exemption must provide the state auditor with an application prepared by a person who is skilled in government accounting. A local government with total revenues or expenditures that are over $100,000 and no more than $750,000 during a fiscal year may also complete an application for exemption from audit. A local government seeking this exemption must provide the state auditor with an application that is prepared by an independent accountant with knowledge of government accounting.
The bill changes these 2 thresholds for any fiscal year commencing on or after January 1, 2025. First, the bill changes the $100,000 threshold to $200,000. Second, the bill changes the $750,000 threshold to $1,000,000. The bill would provide consistency with federal requirements and align statutory thresholds with current inflationary values.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 29-1-604, amend (1) and (2)(b) as follows:
Page 2, Line 329-1-604. Exemptions. (1) Any local government where neither
Page 2, Line 4revenues nor expenditures exceed one hundred thousand dollars in any
Page 2, Line 5fiscal year commencing on or after January 1, 1998, but before
Page 2, Line 6January 1, 2025, and where neither revenues nor expenditures
Page 2, Line 7exceed two hundred thousand dollars for any fiscal year
Page 2, Line 8commencing on or after January 1, 2025, may, with the approval of the state auditor, be exempt from the provisions of section 29-1-603.
Page 2, Line 9(2) (b) (I) Any local government where revenues or expenditures
Page 2, Line 10for any fiscal year commencing on or after January 1, 2015, but before
Page 2, Line 11January 1, 2025, are at least one hundred thousand dollars but not more
Page 2, Line 12than seven hundred fifty thousand dollars may, with the approval of the state auditor, be exempt from the provisions of section 29-1-603.
Page 2, Line 13(II) Any local government where revenues or
Page 2, Line 14expenditures for any fiscal year commencing on or after
Page 2, Line 15January 1, 2025, are more than two hundred thousand dollars
Page 2, Line 16but not more than one million dollars may, with the approval of
Page 3, Line 1the state auditor, be exempt from the provisions of section 29-1-603.
Page 3, Line 2SECTION 2. Act subject to petition - effective date. This act
Page 3, Line 3takes effect at 12:01 a.m. on the day following the expiration of the
Page 3, Line 4ninety-day period after final adjournment of the general assembly; except
Page 3, Line 5that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 3, Line 6of the state constitution against this act or an item, section, or part of this
Page 3, Line 7act within such period, then the act, item, section, or part will not take
Page 3, Line 8effect unless approved by the people at the general election to be held in
Page 3, Line 9November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.