OSA Weekly Update - 3/21/2025

1. Message from Auditor Blaha

2. Reminder: Submit TIF Plans Within 60 Days

3. Relief Associations: Investing through the SBI vs. Joining the Statewide Plan

4. Avoiding Pitfall: Asset Inventories

5. Deadlines

1. Message from Auditor Blaha

There’s a lot happening this legislative session. Some of the bills that caught my attention, and generated a lot of conversations in the OSA’s Audit and Reporting Group (AaRG), are HF 2083 and SF 564. In late February, I testified in support of the bill in the Senate, which would raise the audit threshold for cities and towns with a combined clerk and treasurer. Given the public finance staff shortage, this bill could help ease the burden on local government, while still ensuring accountability.

If you have any feedback on HF 2083, SF 564, or other bills I’ve recently testified on, reach out to my team at outreach@osa.state.mn.us.

2. Reminder: Submit TIF Plans Within 60 Days

All TIF plans and modifications should be electronically submitted, along with the appropriate TIF Plan Collection Form, via the State Auditor’s Form Entry System (SAFES). Do not mail copies of TIF plans. State law requires that all TIF plans be filed with the OSA within 60 days after the latest of:

  1. Filing of the request for certification of the TIF district;
  2. Approval of the plan by the municipality; or
  3. Adoption of the plan by the authority.

Additionally, plans are needed to generate the Annual Reporting Form for certified districts. Check to make sure all plans for recently certified districts are submitted as soon as possible so they'll be included when forms become available.

If you have any questions or need access to SAFES, contact us at TIF@osa.state.mn.us.

3. Relief Associations: Investing through the SBI vs. Joining the Statewide Plan

Sometimes there’s confusion about the difference between a fire relief association investing through the State Board of Investment (SBI) and joining the Statewide Volunteer Firefighter (SVF) Plan that’s administered by the Public Employees Retirement Association. Investing through the SBI is a choice on how relief association assets will be invested, while joining the SVF Plan is a choice on how the firefighters’ pension plan will be administered.

See our Pension Topic page for additional information and helpful links.

4. Avoiding Pitfall: Pre-numbered Receipts for Payments Received

From time to time, some local governments receive payments from the public for items such as building or park rentals, swimming lessons, building permits, or animal licenses. Some entities only issue receipts for these payments if the customer requests a receipt. Some entities do not use pre-numbered receipts.

We recommend that public entities issue pre-numbered receipts for all such payments. Otherwise, it is much harder to determine whether all funds collected were turned in for deposit. Receipts should include the following information:

  • Date of the transaction;
  • The amount received;
  • From whom payment was received;
  • The method of payment (cash, check or credit card);
  • The reason for payment; and
  • The signature or initials of the person preparing the receipt.

The receipts can be hand-written or generated by a computer or cash register. When proper receipts are given for all payments, the daily reconciliation between the number of items sold (permits issued, rentals made, etc.) and the money collected is much easier to perform.

The full Avoiding Pitfall is available on the OSA website.

5. Deadlines

 

Cash Basis Township and Cities Reporting

The Annual Financial Reporting Form for Townships reporting on a cash basis of accounting is due March 31, 2025.

The Annual Financial Reporting Form and Unaudited Financial Statements for Cities reporting on a cash basis of accounting and not required to have an Audit or Agreed Upon Procedures Engagement (AUP) completed is due March 31, 2025. 

The Annual Financial Reporting Form, or the State Auditor Data File for CTAS users, and Financial Statements should be submitted through SAFES.

If you don't have a SAFES username and password, email safes@osa.state.mn.us. If you have any questions on reporting, email gid@osa.state.mn.us. For CTAS users, email ctas@osa.state.mn.us.