HB338 Alabama 2024 Session

Summary

Primary Sponsor

Mack N. ButlerRepresentative

Republican

Session

Regular Session 2024

Title

Class IV municipalities, removes restriction on hiring same accountant for more than three consecutive years

Summary

HB338 would remove the cap on how long the same accountant can audit a Class IV Alabama municipality in a row.

What This Bill Does

If passed, the same certified public accountant could audit a Class IV municipality for more than three consecutive fiscal years. The audit would still be performed by a reputable, disinterested CPA, with a true audit summary published in a newspaper and the audit report submitted to the city council at its first meeting after completion. The measure applies to Class IV municipalities and takes effect October 1, 2024.

Who It Affects

• Class IV municipalities in Alabama, which could hire the same accounting firm for audits across more than three consecutive years.
• Certified public accountants and accounting firms serving Class IV municipalities, who would be able to conduct audits for more consecutive years without the previous limit.

Key Provisions

• Amends Section 11-43B-9 to remove the restriction that the same accountant cannot conduct audits for more than three consecutive fiscal years.
• Maintains requirement that the mayor prepare the city’s receipts and expenses statement and that the council hire a reputable, disinterested CPA to perform the audit.
• Requires a true summary of the annual audit report to be published once in a newspaper of general circulation in the city and the audit report to be submitted to the council at its first meeting after completion.
• Effective date: October 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Counties & Municipalities