OSA Weekly Update - 2/2/2024
1. Message from Auditor Blaha
2. Released: 2023 Revenue Thresholds for Audit Requirements
3. TIF: County Administrative Expenses
4. Released: Pension Newsletter
5. Avoiding Pitfall: Release of Not Public Data to the State Auditor
6. Job Openings
7. Upcoming Deadlines
1. Message from Auditor Blaha
The new audit thresholds are out! If you know what I’m talking about, I have a request: We at the OSA are reviewing audit standards to increase efficiency and effectiveness. What are your thoughts on audit parameters for Minnesota local government? Do you have ideas to improve the frequency and type of audit engagements? Do you have ideas about who should be able to use a cash basis for their accounting? Do you have thoughts about deadlines and thresholds that could better align our system? Send these and any other ideas you have to outreach@osa.state.mn.us.
2. Released: 2023 Revenue Thresholds for Audit Requirements
Cities - A city with a population over 2,500 must have an annual audit performed.
Cities with Combined Clerk/Treasurers - A city with a population of 2,500 or less and a combined clerk/treasurer must have an annual audit for 2023 if its annual revenue is more than $274,000. A city with a combined clerk/treasurer and annual revenue of $274,000 or less must have an Agreed-Upon Procedures engagement once every five years.
Towns - A town with a population over 2,500 and 2023 annual revenue of $1,223,000 or more must have an annual audit.
Towns with Combined Clerk/Treasurers - A town with a combined clerk/treasurer must have an annual audit for 2023 if its annual revenue was more than $274,000. A town with a combined clerk/treasurer and annual revenue of $274,000 or less must have an Agreed-Upon Procedures engagement once every five years.
Special Districts - A special district must have an annual audit for 2023 if its annual revenue was more than $274,000. A special district with annual revenue of $274,000 or less must have an Agreed-Upon Procedures engagement once every five years.
The Office of the State Auditor has developed minimum procedures and a reporting format for Agreed-Upon Procedures engagements of cities and towns that have combined the offices of clerk and treasurer, and special districts, with annual revenues less than the audit threshold. The minimum procedures and reporting format for Agreed-Upon Procedures engagements can be found on the OSA website.
3. TIF: County Administrative Expenses
Counties may require reimbursement from a development authority for actual expenses related to administration of the authority's TIF districts. Reimbursement may be required by February 15th following the year in which the expenses were incurred.
To learn more, please review the TIF article on the OSA website.
4. Released: Pension Newsletter
The January Pension Newsletter was released. The Newsletter provides information about relief association reporting forms and OSA reporting deadlines. Information about the upcoming deadline for fire chiefs to certify firefighter service credit amounts is also provided, along with reminders and links to the upcoming Fire State Aid Certification and Supplemental Benefit Reimbursement submission deadlines.
5. Avoiding Pitfall: Release of Not Public Data to the State Auditor
Political subdivisions sometimes ask if they can release to the State Auditor information that is classified as “not public data” under the Minnesota Government Data Practices Act. Minnesota law expressly allows political subdivisions to provide the State Auditor with not public information for an examination, financial audit, compliance audit, or investigation performed by the State Auditor.
In addition, local government employees and officials may provide the State Auditor with not public information when evidence of financial fraud or the possible misuse of public funds is discovered, in compliance with the mandatory reporting obligations found in Minn. Stat. § 609.456, subd. 1.
The full Avoiding Pitfall is available on the OSA website.
6. Job Openings
Director of Standards and Procedures
The OSA Audit Practice Division performs external financial and compliance audits of local governments and is seeking applicants with a high level of technical expertise to support quality control as part of our Standards and Procedures team. The Director of Standards and Procedures is a hybrid position based in St. Paul. This position is responsible for providing oversight to ensure that the audits of local governments are performed in accordance with audit industry standards, the OSA’s quality control standards, and appropriate regulatory requirements.
The job posting will close on February 8, 2024.
7. Upcoming Deadlines
2023 Annual Forfeiture Expenditures Report by February 28, 2024
Law enforcement agencies and prosecuting authorities, please remember to report expenditure of forfeited property proceeds, including proceeds received through state and federal forfeiture law to the Office of the State Auditor (OSA) by February 28, 2024.
Instructions for the Forfeiture Expenditures form may be found on the OSA website.
Reporting must be done using the online reporting tool available in SAFES.
If you have not used SAFES in the past and need a username and password, please send your contact information including name, title, entity mailing address, and phone number to SAFES@osa.state.mn.us.
If you have questions or need assistance completing the form, please contact Christy John at 651-297-3681 or Christy.John@osa.state.mn.us.