State Auditor's E-Update - 6/17/2022
1. Message from Auditor Blaha
2. Released: Minnesota Special Districts Report on 2020 Revenues, Expenditures, and Debt
3. TIF: Reporting "Non-TIF" Bonds
4. Relief Associations: Investment Report Card
5. Avoiding Pitfall: Contracts and Conflicts of Interest
1. Message from Auditor Blaha
The Emancipation Proclamation went into effect in 1863 but did not take full affect across the United States until June 19, 1865 when the Union Army arrived in Galveston, TX with the news that all enslaved people were free. Juneteenth is the celebration of June 19, 1865.
This important holiday is a reminder that official action only has true meaning when it comes to fruition. The Emancipation Proclamation was only the beginning of the important work to right a terrible wrong. Juneteenth commemorates an important action and reminds us that implementation takes work and commitment by everyone.
This weekend, as African American communities across our state and country celebrate, I encourage you to learn more about Juneteenth, and the deep systemic impact slavery has had on this country. Happy Freedom Day!
2. Released: Minnesota Special Districts Report on 2020 Revenues, Expenditures, and Debt
Last week the Office of the State Auditor (OSA) released the annual Minnesota Special Districts 2020 Revenues, Expenditures, and Debt Report.
Minnesota has over 600 special districts that provide clean water, transportation, public safety, health, housing, and other services to residents. Special districts are local government units created or authorized by state law to perform specific duties or to provide specific services in a limited scope.
You may view the report on the OSA website.
3. TIF: Reporting "Non-TIF" Bonds
A "non-TIF bond" is one not secured by a pledge of increment from any TIF district. A development authority must be able to establish that the use of tax increment to pay debt service on a non-TIF bond is legally authorized. As TIF authorities work on completing TIF Annual Reporting Forms, form preparers should take note to understand how the reporting of "non-TIF bonds" differs from reporting TIF bonds.
For more information please review this article on the OSA website.
If you have any questions, please contact us at TIF@osa.state.mn.us.
4. Relief Associations: Investment Report Card
The Office of the State Auditor (OSA) provides an “Investment Report Card” as an educational tool to help relief association trustees monitor investment performance. The report card is sent by email to each relief association after our review of the relief association’s financial and investment reporting forms is complete. The report card provides one-year and multi-year rates of return calculated for the relief association, and a custom benchmark rate of return. The custom benchmark rate of return can be used to measure the relief association’s actual investment performance against market returns.
Newly added to the report card is a graphical comparison between the relief association’s average annual rates of return and the average annual rates of return for the Minnesota State Board of Investment’s Balanced Fund. Legislation recently enacted requires each relief association to certify annually to the OSA that the relief association’s board of trustees has reviewed the investment information contained within the report card.
5. Avoiding Pitfall: Contracts and Conflicts of Interest
Generally, a public officer authorized to make a sale, lease, or contract in an official capacity must not have a personal financial interest in that sale, lease, or contract, or personally benefit financially from it. See Minn. Stat. § 471.87. A “public officer” includes at least those public officers that approve contracts, which is usually:
- City council members;
- Town supervisors and town board members;
- County officials; and
- School board members.
For the complete scope of who is included in this prohibition, consult with your legal counsel.
This Avoiding Pitfall is available on our website.