OSA Weekly Update - 4/19/2024

1. Message from Auditor Blaha

2. Available: 2024 Supplemental Benefit Reimbursement Amounts

3. New Information for Fiscal Year 2024: Reporting Due in 2025 for Cash Basis Cities

4. Avoiding Pitfall: Check the CPV for Purchases over $25,000


1. Message from Auditor Blaha

The public finance staff shortage is one of our top concerns at the OSA. You’ll notice below in item #3 that we're piloting a change in deadlines for some cash basis cities beginning in 2025. The idea came from people like you, and we hope you’ll keep them coming. This summer and fall, we're bringing together stakeholders to discuss ways to streamline and better align audit and reporting requirements for local government entities. To be part of that effort, or to send ideas for us to consider, email us at feedback@osa.state.mn.us. Together, we can lighten the load while maintaining high standards.


2. 2024 Supplemental Benefit Reimbursement Amounts

A list of the 2024 supplemental benefit reimbursement amounts for fire relief associations, released by the Department of Revenue, is now available on the OSA website.


3. New Information for Fiscal Year 2024: Reporting Due in 2025 for Cash Basis Cities

Starting for Fiscal Year 2024, Cities reporting on a cash basis of accounting who are required to have an Audit or Agreed Upon Procedure will have a new due date of June 15, 2025, rather than the original March 31 due date. Therefore, the Annual Financial Reporting Form and the Audit or Agreed Upon Procedures Engagement (and unaudited financial statements) will be due into the OSA by June 15, 2025.

Cash basis cities not required to have an Audit or Agreed Upon Procedures Engagement will still be required to submit the 2024 Annual Financial Reporting Form or State Auditor Data File if using CTAS and Financial Statements to the OSA by March 31, 2025. The Reporting due date for GAAP basis cities will continue to be June 30th.


4. Avoiding Pitfall: Check the CPV for Purchases over $25,000

Many municipalities purchase supplies, materials, or equipment through the State of Minnesota’s Cooperative Purchasing Venture (CPV). Minnesota law requires municipalities to consider the CPV for contracts estimated to exceed $25,000. For these contracts, a municipality must “consider the availability, price and quantity of supplies, materials, or equipment available through the state’s cooperative purchasing venture before purchasing through another source.” Minn. Stat. § 471.345, subd. 15.

The Minnesota Department of Administration (MDA) oversees the CPV. More information on the CPV can be found on the MDA website.

The full Avoiding Pitfall is available on the OSA website.