OSA Weekly Update - 9/13/2024
1. Message from Auditor Blaha
2. Reminder: OPEB Trust Investment Reporting Form
3. Avoiding Pitfall: Contract Quotations
1. Message from Auditor Blaha
Thank you for all your feedback from last week’s message. It’s been so constructive that we’d like to pitch the same request:
It’s budget setting season at the OSA and we could use your input. State agencies and offices need to submit budget requests for the next legislative session in October. At the OSA we’re evaluating our budget for what needs to be protected, what could be added, and what we could let go. As I’m sure it does in your shop, these discussions are a good place to get gather feedback on what people would like to see our office do. If you have ideas that could help us set our budget for next year, let us know at outreach@osa.state.mn.us.
2. Reminder: OPEB Trust Investment Reporting Form
Other Postemployment Benefits (OPEB) include all benefits, other than pensions, promised to retirees. Minnesota law permits local government entities to create trusts to set aside money to pay future OPEB obligations. Administrators of these trusts are to annually report and certify certain investment information to the Office of the State Auditor by Oct. 25. Contact us at OPEB@osa.state.mn.us with any questions or to obtain login information for accessing the form.
3. Avoiding Pitfall: Contract Quotations
Minnesota’s Uniform Municipal Contracting Law uses dollar-amount thresholds to determine whether local government contracts may be entered into on the basis of competitive bids, quotations, or purchase or sale in the open market. Contracts estimated to exceed $175,000 must generally be made using sealed bids, solicited by public notice. In general, contracts with estimated values of $175,000 or less can be made based on quotations. Contracts estimated not to exceed $25,000 may be made on either quotations or in the open market.
A valid quotation must include a price offered by a vendor who can actually sell an item. A vehicle’s “bluebook” price alone is not a quotation for purposes of these provisions. If quotations are used, at least two quotations must be obtained, if possible, and all quotations should be kept on file for at least one year.
For contracts for the purchase of supplies, materials or equipment estimated to exceed $25,000, a municipality must consider the state’s Cooperative Purchasing Venture (CPV) before purchasing through another source. More information on the CPV can be found here.
The full Avoiding Pitfall is available on the OSA website.