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

SF 2245 requires Iowa governmental subdivisions (like cities, counties, school districts, and hospitals) to cooperate with the state auditor when suspected embezzlement, theft, or major financial irregularities involving public funds are reported. It mandates that the subdivision reimburse the state auditor for investigation costs, but only up to the amount of misused public funds as determined by the auditor. The bill establishes a clear process where the auditor decides whether to conduct further investigations after initial notification. This directly affects local government entities handling public funds by creating a defined reimbursement mechanism for financial misconduct probes.