OSA Weekly Update - 9/6/2024
1. Message from Auditor Blaha
2. TIF Annual Reporting Redesign Project Reminder – Feedback Sought
3. Pension: Training Opportunity
4. Avoiding Pitfall: Monitoring Risks with Certificates of Deposit
1. Message from Auditor Blaha
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. TIF Annual Reporting Redesign Project Reminder – Feedback Sought
The TIF Division is seeking feedback on the initial vision for a redesigned TIF Annual Reporting Form by Sept. 20. The goal of the project is to improve an authority’s ability to track information in order to better comply with the TIF Act, while also improving the accessibility, function, and style of the form.
Visit the OSA website for more information. There you'll find a video that introduces our initial vision, a link to download the initial draft of the redesigned form, and a short feedback survey.
3. Pension: Training Opportunity
Members of our Pension Division will be teaching a training course for fire relief association trustees at the annual Minnesota State Fire Department Association (MSFDA) conference in Mankato. Our session will be held from 1-5 p.m. on Friday, Sept. 20. If you’re attending the MSFDA conference, stop by to meet members of our Pension team!
4. Avoiding Pitfall: Monitoring Risks with Certificates of Deposit
Government entities are permitted to invest in Certificates of Deposit (CDs) that are “fully insured” by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). Each depositor has up to $250,000 of federal deposit insurance coverage at each individual bank or credit union. Since the FDIC and NCUA insure not only the principal but accrued interest as well, government entities should purchase CDs in amounts just less than the $250,000 limit, so that accrued interest is protected.
Often, government entities will use brokers, banks and certificate-of-deposit placement services to purchase CDs. When purchasing multiple CDs, it is imperative that a government entity set up a system to monitor all CDs purchased to ensure that the total purchased from any given bank or credit union does not exceed the FDIC or NCUA limit. Purchasing multiple CDs from a bank or credit union that together exceed the federal deposit limit will result in losses to the government entity should that bank or credit union fail.
The full Avoiding Pitfall is available on the OSA website.