State Auditor's E-Update - 7/29/2022

1. Message from Auditor Blaha

2. Relief Associations: Pension Newsletter

3. Deadlines: TIF Annual Reporting Form and TIF Annual Disclosure

4. Avoiding Pitfall: Monitoring Internal Controls

1. Message from Auditor Blaha

This week my office released an investigative report on the City of Two Harbors. Our guidance to them applies to all of us: one way to reduce your risk of conflicts of interest is to add an annual financial disclosure requirement for your officials. Getting everyone’s interests on the table regularly and keeping them in mind will reduce your risk of conflicts.

For examples of how this can work, visit the Minnesota Campaign Finance Board’s Government Officials Disclosure Program.

Find our press release and full report on the OSA website.

2. Relief Associations: Pension Newsletter

The July Pension Newsletter has been released. The Newsletter provides information on recent legislative changes affecting distributions following the divorce of a relief association member. The Newsletter also includes a reminder about the upcoming deadline to complete the annual Schedule Form for relief associations with a defined-benefit lump-sum service pension, and information on protecting private member data within the Form. Information on municipal ratification of benefit levels and interest rates is also provided.

3. Deadlines: TIF Annual Reporting Form and TIF Annual Disclosure

TIF Annual Reporting Forms (which are downloaded and submitted in SAFES) are due on or before Monday, August 1.

An annual statement containing specific information about each TIF district must be published in a newspaper of general circulation in the municipality no later than August 15. The information to be published can be found on the "ADS" Tab of the TIF Annual Reporting Form. Please do not forget to publish the disclosure in a timely manner.

Note: Please be sure to verify pre-populated information such as the current, original and captured net tax capacities before submitting your report(s) or publishing your annual disclosure statement(s). If you notice a correction is needed for an already submitted report and would like to submit a revised report, please alert us and we can mark the file for resubmission.

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

4. Avoiding Pitfall: Monitoring Internal Controls

One of the most important steps public entities can take to prevent fraud is to monitor their internal controls on a regular basis. Monitoring allows entities to determine (a) if the controls are being followed, and (b) if the controls are still effective. An entity may adopt a control, but that control will not be effective if employees or management consistently ignore or circumvent the control. Additionally, changes in an entity or the environment in which the entity functions may reduce the effectiveness of internal controls.

You may find more information about this Avoiding Pitfall on our website.