When the term of a bonded officer of a local unit of government expires or the officer dies, resigns or is removed from office, the local unit of government must conduct a “thorough examination” of the officer’s accounts. The examination may be performed by the local unit of government or by an independent accounting firm.
Any shortages or irregularities found during the examination must be reported in writing to the officer and to the bond sureties. The relevant statute is Minn. Stat. § 574.23. If the examination discloses evidence of theft, embezzlement, or the unlawful use of public funds or property, the Office of the State Auditor should be notified. Information about the Office of the State Auditor reporting requirement can be found at:
Date this Avoiding Pitfall was most recently published: 11/16/2012