OSA Weekly Update - 2/7/2025
1. Message from Auditor Blaha
2. Released: 2024 Revenue Thresholds for Audit Requirements
3. Released: Investment Performance Information
4. Available: 2024 Annual Financial Reporting Forms
5. Avoiding Pitfall: Contracting Procedures
6. Job Openings
7. Deadlines
1. Message from Auditor Blaha
Heads Up: The pace of change in federal policy and requirements happening right now can raise questions for those at the local level who use federal funding. In times of rapidly changing or yet developing guidance, documenting reasons for financial decisions is key.
Auditors assess how you follow the rules. So what do you do when the rules are changing? During the confusion at the onset of COVID, the OSA clarified that we hold you accountable for the rules and guidance in effect at the time of your decision. That still holds true today.
In case things change down the road, keep a copy of the rules and guidance in effect at the time of your decision to justify your choices. If the rules change, check to see if the change applies to past decisions, or just those going forward. As always, reach out to your federal contacts if you have questions, and keep a copy of their answers too.
2. Released: 2024 Revenue Thresholds for Audit Requirements
Cities - A city with a population over 2,500 must have an annual audit performed.
Cities with Combined Clerk/Treasurers - A city with a population of 2,500 or less and a combined clerk/treasurer must have an annual audit for 2024 if its annual revenue is more than $276,000. A city with a combined clerk/treasurer and annual revenue of $276,000 or less must have an Agreed-Upon Procedures engagement once every five years.
Towns - A town with a population over 2,500 and 2024 annual revenue of $1,233,000 or more must have an annual audit.
Towns with Combined Clerk/Treasurers - A town with a combined clerk/treasurer must have an annual audit for 2024 if its annual revenue was more than $276,000. A town with a combined clerk/treasurer and annual revenue of $276,000 or less must have an Agreed-Upon Procedures engagement once every five years.
Special Districts - A special district must have an annual audit for 2024 if its annual revenue was more than $276,000. A special district with annual revenue of $276,000 or less must have an Agreed-Upon Procedures engagement once every five years.
The Office of the State Auditor has developed minimum procedures and a reporting format for Agreed-Upon Procedures engagements of cities and towns that have combined the offices of clerk and treasurer, and special districts, with annual revenues less than the audit threshold. The minimum procedures and reporting format for Agreed-Upon Procedures engagements can be found on the OSA website.
3. Released: Investment Performance Information
The OSA is required to annually provide information on the investment performance of the Minnesota State Board of Investment and on the Statewide Volunteer Firefighter Plan administered by the Public Employees Retirement Association. The 2025 Investment Performance Information document, which provides information for the 2024 calendar year, has been posted to the OSA website.
4. Available: 2024 Annual Financial Reporting Forms
The 2024 Annual Financial Reporting Form (Reporting Form) is now available through SAFES. You’ll need a SAFES User ID and Password to access the Form. If you need a SAFES User ID and Password, send an email to SAFES@osa.state.mn.us with your name, title, entity, public mailing address, email, and phone number.
Instructions on completing the Reporting Form can be found on the OSA website.
CTAS Users are now also able to submit the State Auditor Data File and Financial Statements right from CTAS. Instructions can be found on the OSA website.
For cities and townships reporting on a cash basis of accounting, the Reporting Form (CTAS: State Auditor Data File) and Unaudited Financial Statements are due by March 31, 2025. For cities reporting on a cash basis of accounting required to have an Audit or Agreed Upon Procedures Engagement (AUP) completed, the Reporting Form, Audit or Financial Statements, and AUP are due June 16, 2025. For cities and townships reporting on a GAAP basis of accounting, the Reporting Form and Audit are due by June 30, 2025.
5. Avoiding Pitfall: Contracting Procedures
Under the Uniform Municipal Contracting Law, the contracting procedures a local government must follow depend primarily on the estimated amount of the contract.
Generally, if the amount of a contract is estimated to exceed $175,000, the contract must be made by sealed bids, solicited by public notice, and awarded to the lowest responsible bidder. Under some circumstances, electronic reverse auction purchasing or selling processes may be used.
Generally, if the amount of a contract is estimated to exceed $25,000, but not to exceed $175,000, the contract may be made either upon sealed bids or by direct negotiation. If direct negotiations are used, then two or more quotes for the purchase or sale must be obtained when possible. The quotations must be kept on file for a period of at least one year.
If the amount of the contract is estimated to be $25,000 or less, the governing body can then decide to use quotations or the open market. If the contract is made upon quotations, it must then be based, so far as practicable, on at least two quotations that must be kept on file for at least one year.
Depending on the subject matter of the contract or other specifics, other contracting requirements or alternatives may apply. More information can be found in the Office of the State Auditor's two Statements of Position on the topic.
The Statement on City Bidding and Contract Requirements can be found here.
The Statement on County Bidding and Contract Requirements can be accessed here.
The full Avoiding Pitfall is available on the OSA website.
6. Job Openings
Special Investigator
The OSA is hiring two Special Investigators. Based in St. Paul, these positions will independently investigate matters involving information regarding compliance audits and investigations of irregularities and illegal acts of local government units in Minnesota relating to local government finances.
The job posting will close on February 7, 2025.
Accounting Clerk
The OSA is hiring an Accounting Clerk. Based in St. Paul, this position provides routine accounting and administrative support services to all staff. Accounting services include accounts payable, purchasing, payroll, capital asset inventory maintenance, and other related tasks.
The job posting will close February 14, 2025.
7. Deadlines
Due: 2024 Law Enforcement Agency Asset Forfeiture Reporting by February 28, 2025
Remember to report all forfeitures with a 2024 final disposition to the OSA by February 28, 2025. 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 2024 final disposition, you’ll still need to login to SAFES, select the Forms tab, then the 2024 tab, and select the button labeled "I have not disposed or forfeited any property in 2024” by February 28, 2025. Entities with forfeitures to report for the year 2024 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 Christy John at (651) 297-3681 or email Christy.John@osa.state.mn.us.
Due: 2024 Annual Forfeiture Expenditures Reporting by February 28, 2025
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 28, 2025.
Instructions for the Forfeiture Expenditures form are available the on 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 Christy John at (651) 297-3681 or email Christy.John@osa.state.mn.us.