State Auditor's E-Update - 6/4/2021

1. Message from Auditor Blaha

2. Due: GAAP Basis City and Town Reporting by June 30, 2021

3. Due: Performance Measurement Program Report by July 1, 2021

4. Update: Fire Relief Association Working Group Bill

5. Revised: TIF Interfund Loan Statement of Position (SOP)

6. Released: 2021 Update for Small City and Town Accounting System (CTAS)

7. Avoiding Pitfall: TIF Interfund Loans

1. Message from Auditor Blaha

This week I would like to highlight a correction to last week’s E-Update message. Last Friday we said "millions" when referring to the nearly 1.2 million U.S. military deaths during war. This may not seem like much but it's an important detail. At the Office of the State Auditor (OSA) we encourage transparency and accuracy so when we make a mistake, it's important to set the record straight. This is especially crucial when we're honoring those who gave the ultimate sacrifice.

Transparency, accuracy, and accountability are values that we strive to uphold at the OSA. This leads to stronger trust with our partners in local government as well as everyone we serve across the State of Minnesota.

I hope you have a wonderful weekend!

2. Due: GAAP Basis City and Town Reporting by June 30, 2021

For cities and townships reporting on the GAAP basis of accounting, the Reporting Form and Financial Statements/Audit are due by June 30, 2021. The Reporting Form and Financial Statements/Audit should be submitted through SAFES.

Management letters and component unit financial statements should be emailed as PDF attachments to GID.OSA@osa.state.mn.us.

3. Due: Performance Measurement Program Report by July 1, 2021

Participation in the Performance Measurement Program by a city or a county is voluntary. Counties and cities that choose to participate in the standard measures program must officially adopt and implement the ten minimum performance measures and system developed by the Council on Local Results and Innovation (Council). In order to receive the per capita reimbursement and levy limit exemption in 2021, if any, counties and cities must file a report (in a PDF format) with the Office of the State Auditor by July 1, 2021.

For more information on the Performance Measurement Program, please click here.

4. Update: Fire Relief Association Working Group Bill

The 2021 Pension and Retirement Bill, which includes the State Auditor’s Volunteer Fire Relief Association Working Group legislation, was signed into law by Governor Walz on May 25.

The Office of the State Auditor will issue a legislative update this summer with an in-depth explanation of the law changes affecting relief associations.

The Bill can be viewed here. The relief association provisions are in Article 6.

5. Revised: TIF Interfund Loan Statement of Position (SOP)

The TIF Interfund Loan SOP has been updated to identify interest rates for 2021, which include a change in the maximum interest rate that may apply. The Statement can be viewed here.

If you have any questions, please contact us at TIF@osa.state.mn.us.

6. Released: 2021 Update for Small City and Town Accounting System (CTAS)

This afternoon State Auditor Julie Blaha released the 2021 Update for the Small City and Town Accounting System (CTAS). This is a mid-year update to the CTAS Chart of Accounts and Payroll module. The CTAS 2021 Update includes the following:

Chart of Accounts: CTAS account code descriptions edited by CTAS Users will remain intact when installing CTAS updates.

Payroll Module: The Pay Type grid in the Demographics and Job tab allows users to enter data when adding a new employee or a pay type to an existing employee.

The CTAS 2021 Update is now available for CTAS users through the State Auditor’s Form Entry System (SAFES).

The Office of the State Auditor collaborated with representatives of small cities and townships to develop, test, and distribute CTAS. The OSA recommends that all CTAS users access the CTAS webpage which provides resources including a User’s Manual, how-to videos, accounting manuals, order forms, frequently asked questions, and other helpful tools and tips.

7. Avoiding Pitfall: TIF Interfund Loans

A development authority or a municipality may advance or loan money to a tax increment financing (TIF) district from its general fund or other authorized fund to finance expenditures. Loans and advances made after July 31, 2001, must be authorized by a resolution adopted by the entity having jurisdiction over the funds.

This Avoiding Pitfall is available on our website here.