What are the audit requirements for towns?
Towns over 2,500 in population according to the latest census, with annual revenue equal to or more than the annual threshold, must have an annual audit in accordance with generally accepted accounting principles.
Towns with a combined clerk/treasurer must have an annual audit performed by the Office of the State Auditor or a public accountant if annual revenue is more than the annual threshold.
Towns with a combined clerk/treasurer must have an Agreed-Upon Procedures engagement performed by the Office of the State Auditor or a public accountant once in every five-year period if annual revenue is equal to or less than the annual threshold.
In general, Minnesota law does not require a town with separate offices of clerk and treasurer to have an annual audit if (1) the town has a population of 2,500 or less, or (2) the town’s annual revenue is less than the annual threshold.