State Auditor's E-Update - 3/4/2022

1. Message from Auditor Blaha

2. Meeting: Supplemental State Aid Work Group

3. Released: Pension Newsletter

4. Deadline: County TIF Forms Due March 31st

5. Avoiding Pitfall: Small Entities: Review of Checks


1. Message from Auditor Blaha

As we continue to analyze the trends and the local government responses from our State of Main Street listening sessions last week, we want to hear from you. At the end of every listening session I asked "What do you wish more people knew about local government finance?" This proved to be a very helpful, thought provoking exercise that gave us a lot of insight into the bottom line for people working in local government.

So now I ask you -- what do you wish more people knew about local government finance?

Please email me at State.Auditor@osa.state.mn.us with your reaction to that question. As we continue to prepare for our State of Main Street event in March, any feedback you have is greatly appreciated.


2. Meeting: Supplemental State Aid Work Group

The Supplemental State Aid Work Group will meet on March 10, to hear input on how any change to the existing supplemental state aid calculation method could impact fire departments and their pension funds. Those interested in providing input should contact the Pension Division at pension@osa.state.mn.us.

The meeting will be held from 2:00 p.m. to 3:30 p.m. remotely via Zoom, and will be live-streamed for those who are interested in watching. The live-stream link, and the meeting agendas and materials, are available on the Supplemental State Aid Work Group page of the OSA website.


3. Released: Pension Newsletter

The February Pension Newsletter has been released. The Newsletter provides information on two proposals affecting relief associations. The proposals relate to supplemental state aid and pending investment legislation. The Newsletter also provides a link to investment performance information and information about the annual broker certification requirement. Guidance on the management of relief association records is also provided.


4. Deadline: County TIF Forms Due March 31st

The County TIF Information Form is due from counties by March 31, 2022. The form captures information for 2021 regarding a county's TIF administrative activities, distributions of tax increment, and transfers of the TIF enforcement deduction. The information assists the Office of the State Auditor in its oversight of TIF authorities. Instructions on accessing the form in SAFES were emailed to county representatives on January 31, 2022.

If you have any questions, please contact us at TIF@osa.state.mn.us.


5. Avoiding Pitfall: Small Entities: Review of Checks

The OSA sometimes discovers evidence of theft that occurred in small entities with a limited number of office personnel because no oversight procedures were developed to counteract the lack of segregation of duties.

A timely review of bank statements and check images (or original checks, if returned by the bank) needs to be performed to detect problem checks. Specifically, the bank statements and check images should be compared to the claims list approved for payment at the prior board/council meeting(s). This brief review should be performed on a monthly basis by someone who is not involved in the writing of checks. For example, in small entities, it could be performed by a town supervisor or city council member.

This Avoiding Pitfall is available on our website.