OSA Weekly Update - 1/30/2026

How do you share a concern with our Office? Members of the public may report and provide evidence of financial misconduct by a Minnesota local government to the Office of the State Auditor (OSA). This includes concerns involving a county, city, town, political subdivision or school district. The OSA assesses, based on the evidence provided, the OSA’s legal authority and other factors, whether the matter is appropriate for further examination. When the OSA does examine a matter, it does so independently and not on behalf of the individual making the report. Active examinations and information regarding them are classified as non-public data under Minnesota law, so the OSA cannot give status updates or answer questions about the examination or even confirm that an examination is occurring until the examination is completed or no longer being pursued.

In addition, Minnesota law requires local government officials and employees to notify the OSA in writing when they have evidence of possible theft or unlawful use of public funds or property. Minnesota law also requires public accountants to notify the OSA if, during an audit, they discover evidence of financial misconduct by a local government officer or employee.

More information on the applicable standards, and how to report evidence of unlawful use of public funds or property, is available on the OSA website.

2. Available: County TIF Information Form

The County TIF Information Form is now available and is due from counties by March 31, 2026. The form captures information for 2025 regarding a county's TIF administrative activities, distributions of tax increment and transfers of the TIF enforcement deduction. Refer to emailed instructions (sent 1/22/26) on accessing the form in SAFES.

If you are responsible for reporting in your county and did not receive an email, contact our office at TIF@osa.state.mn.us.

3. TIF: Four-Year Knockdown Rule Reminder

TIF authorities must submit evidence to the county auditor by February 1 of the fifth year following certification of a TIF district that activity in accordance with the TIF plan has occurred on parcels in the TIF district. County auditors must then review this evidence and enforce the Four-Year Knockdown Rule if no activity has occurred on a parcel. To learn more, review the OSA Statement of Position.

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

4. TIF: Excess Increment Reporting Reminder

County auditors must, prior to February 1 of each year, report to the commissioner of education the amount of any excess tax increment distributed to a school district for the preceding taxable year. Refer to the Department of Education for the appropriate reporting procedures.

5. Relief Associations: Note About 2025 Reporting Forms

As we’ve shared over the last year, the OSA is redesigning the Schedule Form that's completed annually by relief associations that pay defined-benefit lump-sum service pensions. Updates are also being made to the FIRE Form, the annual financial and investment reporting form completed annually by all relief associations. We anticipate that the FIRE Form will be available for completion in the next week or so, and the Schedule Form will be available later in February.

Note that the March 31 reporting deadline has changed to June 30 starting with submission of 2025 reporting forms during calendar year 2026. All relief associations now have a reporting deadline to the OSA of June 30. Relief associations with at least $750,000 in either special fund assets or liabilities must submit an audit report with their reporting forms, while those with assets and liabilities both below the threshold may submit an agreed-upon procedures report with their forms. 

Contact the OSA’s Pension Division with any questions about relief association reporting forms or reporting requirements.

6. Avoiding Pitfall: Disregarding Policies is a Risk

The full Avoiding Pitfall is available on the OSA website.

7. Deadlines

2025 Lobbying Costs Reporting by January 31, 2026

The 2025 lobbying costs reporting forms are available for both local governments and local government associations. The forms may be found in SAFES.

Instructions can be found on the OSA website for the Lobbying Expenditure Reporting Form for Local Governments and for the Lobbying Expenditure Reporting Form for Local Government Associations.

If you have questions or need assistance completing the form, contact Research Analysis Specialist John Jernberg at (651) 297-3678 or John.Jernberg@osa.state.mn.us.

2026 City and County Summary Budget Form by January 31, 2026

The 2026 City and County Summary Budget Form is now available through SAFES. The form is due by January 31, 2026.

You will need a SAFES User ID and Password to access the Form. If you need SAFES access, send an email to SAFES@osa.state.mn.us with your name, title, entity, public mailing address, email and phone number.

Instructions for completing the form are located on the OSA website.

2025 Law Enforcement Agency Asset Forfeiture Reporting by February 27, 2026

Remember to report all forfeitures (pursued under state and federal law) with a 2025 final disposition to the OSA by February 27, 2026. Final disposition is when an action has been taken on the property (i.e., vehicle is sold, cash is distributed, property is returned to owner, etc.). Reporting must be done using the online reporting tool available in SAFES.

Instructions for the Forfeiture Incident Reporting form are available on the OSA website.

If your agency had no forfeitures with a 2025 final disposition, you’ll still need to log in to SAFES, select the Forms tab, then the 2025 tab, and select the button labeled "I have not disposed or forfeited any property in 2025” by February 27, 2026. Entities with forfeitures to report for the year 2025 should NOT check this box.

If you haven't used SAFES in the past and need a username and password, email your contact information including: Name, title, entity mailing address and phone number to SAFES@osa.state.mn.us.

If you have questions or need assistance completing the form, contact Research Analyst Intermediate Christy John at (651) 297-3681 or email Christy.John@osa.state.mn.us.

2025 Annual Forfeiture Expenditures Reporting by February 27, 2026

Law enforcement agencies and prosecuting authorities, remember to report expenditure of forfeited property proceeds, including proceeds received through state and federal forfeiture law to the OSA by February 27, 2026.

Instructions for the Forfeiture Expenditures form are available on the OSA website. Reporting must be done using the online reporting tool available in SAFES.

If you haven't used SAFES in the past and need a username and password, email your contact information including: Name, title, entity mailing address and phone number to SAFES@osa.state.mn.us.

If you have questions or need assistance completing the form, contact Research Analyst Intermediate Christy John at (651) 297-3681 or email Christy.John@osa.state.mn.us.