Public Funds, Suspected Fraud (1332DP) - Auditor of State

This bill requires governmental subdivisions (like cities, counties, school districts, and hospitals) to cooperate with Iowa's state auditor when suspected embezzlement or financial fraud involving public funds is reported by a certified public accountant. It mandates that the auditor determines if further investigation is needed and establishes procedures for the investigation. Crucially, the affected subdivision must reimburse the auditor for investigation costs, but the reimbursement cannot exceed the amount of public funds actually misused, as determined by the auditor. The bill focuses on clarifying the process and cost recovery for fraud investigations, not on creating new penalties.