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SB 593

An Act amending Title 71 (State Government) of the Pennsylvania Consolidated Statutes, in selection of employees for entrance to or promotion in classified service, providing for additional points in grading civil service examinations of applicants with disabilities.

2025-2026 Regular Session Introduced by Jay Costa and 4 co-sponsors

Raises the audit waiver revenue threshold to $700,000, allowing eligible small entities to be audited once every four years instead of annually.

Referred to State Government
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WeVote Research Nonpartisan
Bill Summary · SB 593

SB 593 — Municipalities and Special Taxing Districts: Annual Audit Waiver Threshold Increase

Status: Introduced Jan 23, 2025 (Assigned to Budget & Taxation)
Summary effective date in bill text: July 1, 2025

Main purpose

Raise the revenue cutoff that allows certain small municipalities and State‑created special taxing districts to receive an audit‑frequency waiver from annual independent audits to once every four years.

Key provisions

  • Amends Article — Local Government §16‑305.
  • Increases the prior‑4‑fiscal‑year revenue threshold for eligibility for an audit waiver from $250,000 to $700,000.
  • Under the waiver, the Legislative Auditor may authorize an eligible municipality or special taxing district to be audited once every four years instead of annually, unless the Legislative Auditor determines, on a case‑by‑case basis, that more frequent audits are necessary.
  • Retains existing audit standards: when audits are required they must be conducted by a certified public accountant (independent auditor or approved official auditor) in compliance with Maryland law; the Legislative Auditor may initiate reviews or accept requests for audits.
  • Effective date: July 1, 2025.

Who is affected

  • Small counties, municipalities, and State‑created special taxing districts whose annual revenues (averaged over the prior four fiscal years) are below $700,000.
  • Entities with revenues between the current $250,000 threshold and the new $700,000 threshold are newly eligible to request the waiver.
  • Auditors and the Office of Legislative Audits (OLA), which will administer waiver requests and any resulting changes in audit schedules.

Fiscal and operational impact

  • State: Fiscal note indicates no material effect on State operations or finances; OLA can manage the change with existing resources.
  • Local governments: Minimal, limited reduction in audit expenditures for jurisdictions that obtain the waiver. OLA estimates approximately 45 entities would qualify under the higher threshold (compared with ~22 under current law), and historically not all eligible entities request waivers.
  • Reporting obligations (e.g., annual financial reports) generally remain in force even for waiver recipients.

Procedural / timeline notes

  • The bill text takes effect July 1, 2025.
  • Waiver determinations remain discretionary with the Legislative Auditor and are made on a case‑by‑case basis; the statute continues to permit the Legislative Auditor to require more frequent audits when warranted.

Compiled from official sources — confirm details with the bill’s official record.

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