State Auditor's E-Update - 10/15/2021
1. Message from Auditor Blaha
2. Meeting: Volunteer Fire Relief Association Working Group
3. Available: 2022 User Authorization Form
4. TIF: PAYG Notes and Interfund Loans are TIF Bonds
5. Released: Performance Measurement Program Report
6. Save-the-Date: OSA Local Government Training Conference
7. Avoiding Pitfall: Fight Payroll Direct Deposit Fraud
1. Message from Auditor Blaha
This morning Governor Walz announced a comprehensive COVID-19 action plan to address the high COVID-19 case counts and crowding of Minnesota hospitals. The plan includes freeing up capacity at Minnesota hospitals and expanding COVID-19 rapid test options throughout the state.
While we can be proud of all the progress we have made, the COVID-19 pandemic is not over. Thank you for doing all you can to keep your community safe!
2. Meeting: Volunteer Fire Relief Association Working Group
The Volunteer Fire Relief Association Working Group met on October 12. The Working Group members reviewed potential topics for consideration, and began discussing how maximum allowable benefit levels are determined for relief associations with defined benefit plans.
Working Group meeting agendas and materials, and a link to watch a recording of the October 12 meeting on the OSA’s YouTube channel, can be found on the Working Group page of the OSA website.
3. Available: 2022 User Authorization Form
Access to reporting forms for accountants, auditors, and other consultants who work with volunteer fire relief associations will expire at the end of the calendar year. Relief association officers will need to renew access for their accountants, auditors, and consultants by completing the 2022 User Authorization Form that is now available for download on the OSA website.
4. TIF: PAYG Notes and Interfund Loans are TIF Bonds
The TIF Act requires that a TIF plan include the amount of bonds to be issued. Interfund loans and pay-as-you-go (PAYG) notes are defined in the TIF Act as bonds. Sometimes plans submitted to our office have indicated that no bonds are to be issued, but also state that an interfund loan or PAYG note will be used. Both types of financing must be included in the amount of estimated bonds in the TIF plan and on reports submitted to our office.
For more information, see these Statements of Position:
If you have any questions, please contact us at TIF@osa.state.mn.us.
5. Released: Performance Measurement Program Report
This week State Auditor Julie Blaha released the 2021 Performance Measurement Program Report. In 2021, 37 cities (4%) and 28 counties (32%) were certified by the Office of the State Auditor (OSA) to the Minnesota Department of Revenue to receive additional aid payments. This was an increase of four cities and three counties from 2020.
Detailed information on how local governments can participate in the Performance Measurement Program as well as the 2021 Report can be found on the OSA website.
6. Save-the-Date: OSA Local Government Training Conference
Mark your calendars for the annual Office of the State Auditor Training Conference to be held Wednesday, November 17, 2021. The conference will once again be presented virtually and will include presentations on implementing GASB No. 87 on leases, a governmental accounting update, dealing with issues relating to your SEFA, the federal audit clearinghouse and the data collection form, our annual legal compliance update, a look back at the Coronavirus Relief Fund, and a look forward to the State and Local Government Recovery Fund and more. A link to the conference information and registration will be posted soon. We welcome all to attend!
7. Avoiding Pitfall: Fight Payroll Direct Deposit Fraud
Fraudsters may attempt to re-rout 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.
This Avoiding Pitfall is available on our website.