State Auditor's E-Update - 10/28/2022

1. Message from Auditor Blaha

2. Relief Associations: Pension Newsletter

3. TIF: Retention of TIF Records

4. Avoiding Pitfall: Change in Bonded Officers

1. Message from Auditor Blaha

One of the roles of the Office of the State Auditor (OSA) is to perform investigative reports when there is suspected fraud in local government. This month our office released an investigative report on the City of Albert Lea.

Our special investigations team reviewed financial records from 2011 to 2018 and found a cash shortfall of over $200,000. The OSA assisted the Albert Lea Police Department by providing information regarding the financial records of the Albert Lea Housing and Redevelopment Authority (HRA). The OSA reviewed financial issues including a shortfall of cash deposits, missing cash receipt records, and questionable supply purchases and reductions of tenant accounts receivable.

The investigative report prepared by my office, in cooperation with the Albert Lea Police Department, along with the efforts of federal prosecutors led to the plea agreement which should result in restitution to the Albert Lea HRA.

For more information on the report, please see our official press release.

The full report is available on the OSA website.

2. Relief Associations: Pension Newsletter

The October Pension Newsletter has been released and is available on the OSA website.

The Newsletter provides updates on the Volunteer Fire Relief Association Working Group and Supplemental State Aid Work Group, both of which the OSA convenes. The Newsletter also includes tips for keeping SAFES login information secure, and information on avoiding pitfalls related to the deposit of municipal funds.

3. TIF: Retention of TIF Records

Minnesota law requires that public records be retained indefinitely, unless they are disposed of with specific permission from the records disposition panel or in accordance with an approved records retention schedule. Most cities use the approved General Records Retention Schedule for Cities.

Under this schedule, TIF records verifying the creation and governance of a district, including resolutions, agreements and certifications, must be kept for the life of the district plus 10 years. Financial support records, such as invoices, generally must be kept for 10 years after they are created, but the retention period can be reduced to six years under certain criteria.

For additional information regarding the retention of TIF records, please see our Statement of Position on record retention.

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

4. Avoiding Pitfall: Change in Bonded Officers

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.

More information about this Avoiding Pitfall is available on the OSA website.