State Auditor's E-Update - 10/22/2021
1. Message from Auditor Blaha
2. Deadline: OPEB Trust Investment Reporting Form
3. Reminder: Forfeiture Reporting
4. TIF: Segregation of TIF Funds
5. Reminder: County 2020 Financial Reporting Form and Audits Due November 1, 2021
6. Register: OSA Local Government Training Conference
7. Avoiding Pitfall: An Environment Where No "Borrowing" of Funds is Allowed
1. Message from Auditor Blaha
In light of the release of our investigative report this week on Hmong College Prep Academy (HPCA) in Saint Paul, I'd like to draw special attention to item #7 -- our Avoiding Pitfall for the week.
As stated in the text, "A control environment...is essential to an organization’s internal control and the safeguarding of public funds." In the case of HCPA, they failed to comply with Minnesota law regarding school investments and as a result, they could not account for the whereabouts of $4.3 million in public funds. Education is one of the most important public goods we provide all children in Minnesota -- schools simply cannot afford to take big risks with the resources that fund them. The situation with HCPA demonstrates why the law does not allow risky investments by public schools.
More information on the HCPA report may be found in our press release.
2. Deadline: OPEB Trust Investment Reporting Form
The investment reporting form for OPEB trusts from trust administrators is due on October 25. The reporting form is available for completion through the State Auditor’s Form Entry System (SAFES).
Any questions regarding OPEB investment reporting can be sent to opeb@osa.state.mn.us.
3. Reminder: Forfeiture Reporting
Law enforcement agencies can continue to report forfeitures with a 2021 final disposition. The designated individual(s) responsible for reporting forfeitures to the Office of the State Auditor (OSA) must have a username and password to log into the State Auditor’s Form Entry System (SAFES).
If you have not received a username and password, please e-mail your public contact information, including your name, email address, phone number, and the physical address of your entity to safes@osa.state.mn.us. Login information will be e-mailed to you. Once you have a username and password, you can log into SAFES to report forfeitures.
Instructions on using SAFES and completing the Forfeiture Incident Reporting Form is on the OSA's website.
4. TIF: Segregation of TIF Funds
Each TIF authority is required to account for the revenues and expenditures of tax increment for each district separately from the revenues and expenditures of all other money – including tax increment from other TIF districts.
The TIF Act requires authorities to segregate each district’s tax increment in a special account (or accounts) on the TIF authority’s official books and records (or it may establish, by resolution, for the increment to otherwise be held by a trustee or trustees for the benefit of holders of bonds).
For more information regarding the segregation of TIF funds, please refer to our Statement of Position TIF Segregation of Funds.
If you have any questions, please contact us at TIF@osa.state.mn.us.
5. Reminder: County 2020 Financial Reporting Form and Audits Due November 1, 2021
The 2020 County Annual Financial Reporting Form and Audits are to be submitted through SAFES by November 1, 2021. You will need a user name and password to be able to access SAFES. If you do not have a user name and password, please send an email to safes@osa.state.mn.us with the name of the county, your name, title, public email, mailing addresses, and telephone number.
Any other reports (i.e. management letters) associated with the annual audit must be emailed to gid@osa.state.mn.us.
6. Register: OSA Local Government Training Conference
Registration is now open for the OSA Local Government Training Conference on November 17, 2021. The registration process is once again being managed by the National Association of State Auditors, Comptrollers, and Treasurers (NASACT). Information and registration for the conference may be found on the NASACT website.
You will need to have a NASACT profile in order to register for the conference. Please note that if you attended last year, you should already have a profile. If you need assistance, please call 859-276-1147.
7. Avoiding Pitfall: An Environment Where No "Borrowing" of Funds is Allowed
A control environment, established by management, is essential to an organization’s internal control and the safeguarding of public funds. For example, an environment should be created that prohibits the use of public funds for any personal reason – even in an emergency.
This Avoiding Pitfall is available on our website.