OSA Weekly Update - 3/8/2024
1. Message from Auditor Blaha
2. Reminder: Investment Business Recipient Disclosure Form
3. Avoiding Pitfall: Fight Payroll Direct Deposit Fraud
4. Upcoming Deadlines
1. Message from Auditor Blaha
Join us! At the OSA, we created the State of Main Street to share city, county, and township data and how it impacts Minnesotans. This year, we are hosting three listening session webinars where we share what we’re seeing in local budget numbers. Each webinar will start with an overview from our researchers then a discussion led by a team of panelists. We use what we learn from you to create an analysis to help decision makers like legislators, local leaders, and all who care about local government make good financial choices for their communities.
Whether you want to participate or just listen in, we hope you will join us for the 2024 State of Main Street listening tour – follow the link and sign-up for a listening session that works for you.
2. Reminder: Investment Business Recipient Disclosure Form
Fire relief associations are required to annually submit by March 31 a completed Investment Business Recipient Disclosure Form to the Executive Director of the Legislative Commission on Pensions and Retirement. The form requires the chief administrative officer of the relief association to list all the recipients of investment business with respect to investments made by the relief association. For the convenience of relief association trustees, a copy of the form is available on the OSA website.
Fraudsters may attempt to re-route electronic payroll deposits to themselves through fraudulent requests to change the destination account. This could occur in an email purporting to be from an employee, or in a fraudulent direct depository change request form.
It is important to be aware of this threat and protect your payroll system with internal controls. Here are some specific controls to consider:
- Verify each request by contacting the employee directly -- in person, or using a phone number you can rely on.
- Require the employee to provide an original signed ACH form; not an electronic form.
- Take ACH forms off the internet, and only provide them to an internal or external address on file.
- On an ACH form, require that the employee to provide the previous bank routing and account number for verification.
- Require multiple approvals.
For additional information, see the League of Minnesota Cities Electronic Funds Transfer Fraud. See also, GFOA publication Bank Account Fraud Prevention.
The full Avoiding Pitfall is available on the OSA website.
4. Upcoming Deadlines
Relief Association Reporting Deadlines
Reporting forms for fire relief associations with less than $750,000 in assets and less than $750,000 in liabilities are due by March 31. In addition to the reporting forms, each relief association with assets and liabilities below the statutory threshold must have an Agreed-Upon Procedures engagement and submit the certified public accountant’s report on applying the procedures.
Form submissions are not complete until all required signatures are provided. The form signature pages are provided in the PDF version of the form that is created after the form is uploaded through the State Auditor’s Form Entry System (SAFES). The forms can be signed electronically in SAFES or paper signature pages can be submitted.
Reporting forms and audited financial statements for fire relief associations with assets or liabilities of at least $750,000 are due by June 30.
County TIF Information Forms Due April 1
The County TIF Information Form is due from counties by April 1, 2024. The form captures activity that occurred in 2023 including the county's TIF administrative activities, distributions of tax increment, and transfers of TIF enforcement deduction. The information assists the Office of the State Auditor in its oversight of TIF authorities. Instructions on accessing the form in SAFES were emailed to county representatives on January 16, 2024.
If you have any questions, please contact us at TIF@osa.state.mn.us.