A bill for an act relating to audits of governmental subdivisions by the state auditor concerning suspected embezzlement, theft, or other significant financial irregularities.

HF 2464 requires cities, counties, school districts, and other local government entities (called "governmental subdivisions") to cooperate with Iowa's state auditor when suspected embezzlement, theft, or major financial irregularities involving public funds are reported. The state auditor determines if further investigation is needed, and the affected subdivision must reimburse the auditor for investigation costs - limited to the amount of misused public funds. This bill establishes a clear process for investigating financial misconduct at local government levels while capping reimbursement amounts based on the actual loss. It directly affects all governmental subdivisions defined in the bill, including cities, counties, school districts, and public hospitals.