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LEGISLATIVE BILL 829
Approved by the Governor April 7, 2026
Introduced by Lonowski, 33.
A BILL FOR AN ACT relating to the Auditor of Public Accounts; to amend section
84-304, Revised Statutes Supplement, 2025; to change provisions relating
to certain audit examinations; to repeal the original section; and to
declare an emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 84-304, Revised Statutes Supplement, 2025, is amended
to read:
84-304 It shall be the duty of the Auditor of Public Accounts:
(1) To give information electronically to the Legislature, whenever
required, upon any subject relating to the fiscal affairs of the state or with
regard to any duty of his or her office;
(2) To furnish offices for himself or herself and all fuel, lights, books,
blanks, forms, paper, and stationery required for the proper discharge of the
duties of his or her office;
(3)(a) To examine or cause to be examined, at such time as he or she shall
determine, books, accounts, vouchers, records, and expenditures of all state
officers, state bureaus, state boards, state commissioners, the state library,
societies and associations supported by the state, state institutions, state
colleges, and the University of Nebraska, except when required to be performed
by other officers or persons. Such examinations shall be done in accordance
with generally accepted government auditing standards for financial audits and
attestation engagements set forth in Government Auditing Standards (2011
Revision for audit periods ending before June 30, 2020, or (2024 2018 Revision)
for audit periods ending on or after June 30, 2020), published by the
Comptroller General of the United States, Government Accountability Office, and
except as provided in subdivision (11) of this section, subdivision (16) of
section 50-1205, and section 84-322, shall not include performance audits,
whether conducted pursuant to attestation engagements or performance audit
standards as set forth in Government Auditing Standards ( 2024 2018 Revision),
published by the Comptroller General of the United States, Government
Accountability Office.
(b) Any entity, excluding the state colleges and the University of
Nebraska, that is audited or examined pursuant to subdivision (3)(a) of this
section and that is the subject of a comment and recommendation in a management
letter or report issued by the Auditor of Public Accounts shall, on or before
six months after the issuance of such letter or report, provide to the Auditor
of Public Accounts a detailed written description of any corrective action
taken or to be taken in response to the comment and recommendation. The Auditor
of Public Accounts may investigate and evaluate the corrective action. The
Auditor of Public Accounts shall then electronically submit a report of any
findings of such investigation and evaluation to the Governor, the appropriate
standing committee of the Legislature, and the Appropriations Committee of the
Legislature. The Auditor of Public Accounts shall also ensure that the report
is delivered to the Appropriations Committee for entry into the record during
the committee's budget hearing process;
(4)(a) To examine or cause to be examined, at the expense of the political
subdivision, when the Auditor of Public Accounts determines such examination
necessary or when requested by the political subdivision, the books, accounts,
vouchers, records, and expenditures of any agricultural association formed
under Chapter 2, article 20, any county agricultural society, any joint airport
authority formed under the Joint Airport Authorities Act, any city or county
airport authority, any bridge commission created pursuant to section 39-868,
any cemetery district, any community redevelopment authority or limited
community redevelopment authority established under the Community Development
Law, any development district, any drainage district, any local public health
department as defined in section 71-1626, any historical society, any hospital
authority or district, any county hospital, any housing agency as defined in
section 71-1575, any irrigation district, any county or municipal library, any
community mental health center, any railroad transportation safety district,
any rural water district, any township, Wyuka Cemetery, the Educational Service
Unit Coordinating Council, any entity created pursuant to the Interlocal
Cooperation Act, any educational service unit, any village, any service
contractor or subrecipient of state or federal funds, any political subdivision
with the authority to levy a property tax or a toll, or any entity created
pursuant to the Joint Public Agency Act.
For purposes of this subdivision, service contractor or subrecipient means
any nonprofit entity that expends state or federal funds to carry out a state
or federal program or function, but it does not include an individual who is a
direct beneficiary of such a program or function or a licensed health care
provider or facility receiving direct payment for medical services provided for
a specific individual.
(b) The Auditor of Public Accounts may waive the audit requirement of
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subdivision (4)(a) of this section upon the submission by the political
subdivision of a written request in a form prescribed by the auditor. The
auditor shall notify the political subdivision in writing of the approval or
denial of the request for a waiver.
(c) Through December 31, 2017, the Auditor of Public Accounts may conduct
audits under this subdivision for purposes of sections 2-3228, 12-101, 13-2402,
14-567, 14-1805.01, 14-2111, 16-1017, 16-1037, 19-3501, 23-1118, 23-3526,
71-1631.02, and 79-987.
(d) Beginning on May 24, 2017, the Auditor of Public Accounts may conduct
audits under this subdivision for purposes of sections 13-2402, 14-567,
14-1805.01, 14-2111, 15-1017, 16-1017, 16-1037, 18-814, 71-1631.02, and 79-987
and shall prescribe the form for the annual reports required in each of such
sections. Such annual reports shall be published annually on the website of the
Auditor of Public Accounts;
(5) To report promptly to the Governor and the appropriate standing
committee of the Legislature the fiscal condition shown by such examinations
conducted by the auditor, including any irregularities or misconduct of
officers or employees, any misappropriation or misuse of public funds or
property, and any improper system or method of bookkeeping or condition of
accounts. The report submitted to the committee shall be submitted
electronically. In addition, if, in the normal course of conducting an audit in
accordance with subdivision (3) of this section, the auditor discovers any
potential problems related to the effectiveness, efficiency, or performance of
state programs, he or she shall immediately report them electronically to the
Legislative Oversight Committee which may investigate the issue further, report
it electronically to the appropriate standing committee of the Legislature, or
both;
(6)(a) To examine or cause to be examined the books, accounts, vouchers,
records, and expenditures of a fire protection district. The expense of the
examination shall be paid by the political subdivision.
(b) Whenever the expenditures of a fire protection district are one
hundred fifty thousand dollars or less per fiscal year, the fire protection
district shall be audited no more than once every five years except as directed
by the board of directors of the fire protection district or unless the auditor
receives a verifiable report from a third party indicating any irregularities
or misconduct of officers or employees of the fire protection district, any
misappropriation or misuse of public funds or property, or any improper system
or method of bookkeeping or condition of accounts of the fire protection
district. In the absence of such a report, the auditor may waive the five-year
audit requirement upon the submission of a written request by the fire
protection district in a form prescribed by the auditor. The auditor shall
notify the fire protection district in writing of the approval or denial of a
request for waiver of the five-year audit requirement. Upon approval of the
request for waiver of the five-year audit requirement, a new five-year audit
period shall begin.
(c) Whenever the expenditures of a fire protection district exceed one
hundred fifty thousand dollars in a fiscal year, the auditor may waive the
audit requirement upon the submission of a written request by the fire
protection district in a form prescribed by the auditor. The auditor shall
notify the fire protection district in writing of the approval or denial of a
request for waiver. Upon approval of the request for waiver, a new five-year
audit period shall begin for the fire protection district if its expenditures
are one hundred fifty thousand dollars or less per fiscal year in subsequent
years;
(7) To appoint two or more assistant deputies (a) whose entire time shall
be devoted to the service of the state as directed by the auditor, (b) who
shall be certified public accountants with at least five years' experience, (c)
who shall be selected without regard to party affiliation or to place of
residence at the time of appointment, (d) who shall promptly report to the
auditor the fiscal condition shown by each examination, including any
irregularities or misconduct of officers or employees, any misappropriation or
misuse of public funds or property, and any improper system or method of
bookkeeping or condition of accounts, and it shall be the duty of the auditor
to file promptly with the Governor a duplicate of such report, and (e) who
shall qualify by taking an oath which shall be filed in the office of the
Secretary of State;
(8) To conduct audits and related activities for state agencies, political
subdivisions of this state, or grantees of federal funds disbursed by a
receiving agency on a contractual or other basis for reimbursement to assure
proper accounting by all such agencies, political subdivisions, and grantees
for funds appropriated by the Legislature and federal funds disbursed by any
receiving agency. The auditor may contract with any political subdivision to
perform the audit of such political subdivision required by or provided for in
section 23-1608 or 79-1229 or this section and charge the political subdivision
for conducting the audit. The fees charged by the auditor for conducting audits
on a contractual basis shall be in an amount sufficient to pay the cost of the
audit. The fees remitted to the auditor for such audits and services shall be
deposited in the Auditor of Public Accounts Cash Fund;
(9)(a) To examine or cause to be examined the books, accounts, vouchers,
and records related to any money transferred pursuant to subsection (2) or (4)
of section 79-3501, any fund receiving any such transfer, or any subsequent
transfer or expenditure of such money when the Auditor of Public Accounts
determines such examination necessary or when requested by (i) any department
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or agency receiving any such transfer or acting as the administrator for a fund
receiving any such transfer, (ii) any recipient or subsequent recipient of
money disbursed from any such fund, or (iii) any service contractor responsible
for managing, on behalf of any entity, any portion of any such fund or any
money disbursed from any such fund.
(b) Any examination pursuant to subdivision (9)(a) of this section shall
be made at the expense of the department or agency, recipient or subsequent
recipient, or service contractor whose books, accounts, vouchers, or records
are being examined.
(c) For purposes of this subdivision, recipient, subsequent recipient, or
service contractor means a nonprofit entity that expends funds transferred
pursuant to subsection (2) or (4) of section 79-3501 to carry out a state
program or function, but does not include an individual who is a direct
beneficiary of such a program or function.
(d) The Auditor of Public Accounts shall prescribe the form for the annual
reports required in subsection (6) of section 79-3501. Such annual reports
shall be published on the website of the Auditor of Public Accounts;
(10) To develop and maintain an annual budget and actual financial
information reporting system for political subdivisions that is accessible
online by the public;
(11) When authorized, to conduct joint audits with the Legislative
Oversight Committee as described in section 50-1205;
(12) Unless otherwise specifically provided, to assess the interest rate
on delinquent payments of any fees for audits and services owing to the Auditor
of Public Accounts at a rate of fourteen percent per annum from the date of
billing unless paid within thirty days after the date of billing. For an entity
created pursuant to the Interlocal Cooperation Act or the Joint Public Agency
Act, any participating public agencies shall be jointly and severally liable
for the fees and interest owed if such entity is defunct or unable to pay; and
(13) In consultation with statewide associations representing (a) counties
and (b) cities and villages, to approve annual continuing education programs
for county treasurers, city treasurers, and village treasurers as required by
sections 14-553, 15-317, 16-318, 17-606, and 23-1601. The cost of attending
such programs shall be at the expense of the county, city, or village. The
auditor shall maintain records of program attendance and notify each county
board, city council, or village board of trustees if its treasurer has not
completed such program attendance. The auditor shall inform the Attorney
General and the county attorney of the county in which a treasurer is located
if such treasurer has not completed a required annual continuing education
program.
Sec. 2. Original section 84-304, Revised Statutes Supplement, 2025, is
repealed.
Sec. 3. Since an emergency exists, this act takes effect when passed and
approved according to law.
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