OSA Weekly Update - 12/1/2023

1. Message from Auditor Blaha

2. TIF: Regularly Review Terms of TIF Obligations

3. Released: Pension Newsletter

4. Avoiding Pitfall: Fire Department Checking Accounts

1. Message from Auditor Blaha

Minnesota’s State Board of Investment (SBI) was in the news this week due to people calling for investment actions to further issues dear to them. While it’s front of mind, here’s an overview of this important organization. The SBI invests almost $130 billion of state funds, the majority of which are pension funds for public employees. I, along with the Governor, Attorney General, and Secretary of State function as the board of the SBI overseeing a nation-leading staff of financial professionals. These funds touch about 800,000 people, including around 150,000 currently collecting retirement benefits. To learn more, the SBI website has extensive data on the performance of the fund, the beliefs that drive SBI investment strategy, and more.

2. TIF: Regularly Review Terms of TIF Obligations

To avoid making improper payments with tax increment funds, an authority should annually or regularly review the terms of any bonds, notes, loans, or contracts to which tax increment is obligated. To learn more, please review the TIF topic.

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

3. Released: Pension Newsletter

The November Pension Newsletter was released. The Newsletter provides information on the Supplemental Benefit Reimbursement form that is now available for completion on the Department of Revenue’s website. The Newsletter also includes information about proper handling of grant revenue and a reminder about requirements for multiple signatures on checks. A link to the updated Agreed-Upon Procedures Guide, Sample Independent Accountant's Report, and sample client representation letter for 2023 calendar year reports is also provided.

4. Avoiding Pitfall: Fire Department Checking Accounts

The Office of the State Auditor has seen instances where municipal fire department funds are handled in a manner that is different from other municipal department funds. Specifically, we have seen a separate fire department checking account under the control of someone within the fire department. All funds of a city or town fire department should be under the control of the city or town and treated in the same manner as any other city/town department funds.

The full Avoiding Pitfall is available on the OSA website.