OSA Weekly Update - 10/3/2025
1. Message from Auditor Blaha
2. Meeting: Fire Relief Association Working Group
3. Released: 2025 Fire and Police State Aid Amounts
4. TIF: Review TIF Districts for Decertification Requirements
5. Avoiding Pitfall: Tax Identification Numbers
1. Message from Auditor Blaha
Reminder: Our Government Information Division shared a new webpage outlining upcoming audit requirement changes.
Effective Aug. 1, 2025, the Minnesota Legislature raised the audit threshold for Cities, Towns, and Special Districts to $1,000,000 in annual revenue, with adjustments for inflation in future years. While this change may reduce audit obligations for some entities, certain contracts or grants may still require audits.
To learn more about how these changes may impact your entity, visit the OSA website and email any questions to GID@osa.state.mn.us.
2. Meeting: Fire Relief Association Working Group
The State Auditor’s Fire Relief Association Working Group met on Sept. 30 and finalized its proposals for the 2026 Legislative Session. The proposals include increasing the threshold at which an annual audit is required to $1,000,000 in either special fund assets or liabilities, providing a one-year grace period before an audit becomes required when a relief association exceeds the threshold and clarifying provisions related to service pension calculations for firefighters who return to active service after a break in service.
Links to watch recordings of Working Group meetings and copies of meeting materials are posted on the Fire Relief Association Working Group page of the OSA website.
3. Released: 2025 Fire and Police State Aid Amounts
The 2025 fire and police state aid amounts have been released by the Minnesota Department of Revenue. Links to listings of the aid amounts are posted to the OSA website.
4. TIF: Review TIF Districts for Decertification Requirements
As the end of the year approaches, this is a good time to review TIF districts for decertification requirements. TIF districts must be decertified when they reach a duration limit or the decertification requirements of the Six-Year Rule. Timely decertification, generally by resolution, avoids improper receipt of tax increments in following years. If you have any questions, contact us at TIF@osa.state.mn.us.
For more information, see Review TIF Districts for Decertification Requirements, as well as the videos The Six-Year Rule and How to Monitor the Six-Year Rule.
You may find the Confirmation of Decertified TIF District Form, which is required to be completed when a district is decertified, on the OSA website.
5. Avoiding Pitfall: Tax Identification Numbers
We sometimes find organizations that use a public entity’s tax identification number when the organization is not part of the public entity. For example, some entities have employee “Sunshine” clubs where employees chip in money for flowers or cards for other employees. Similarly, employees in a particular department may donate their own funds for parties or banquets.
The public entity’s tax identification number should only be used for the public entity’s financial accounts. Financial accounts containing employee funds or the funds of outside groups should not use the public entity’s tax identification number. Public entities should periodically check with their financial institutions to be sure no one else is using the public entity’s tax identification number on an account.
The full Avoiding Pitfall is available on the OSA website.