State Auditor's E-Update - 10/29/2021
1. Message from Auditor Blaha
2. Meeting: Volunteer Fire Relief Association Working Group
3. Released: Pension Newsletter
4. TIF: Review TIF Districts for Decertification Requirements
5. Released: 2020 Municipal Liquor Store Report
6. Reminder: Special Districts to Report to the Office of the State Auditor
7. Avoiding Pitfall: Municipal Liquor Store Internal Controls
1. Message from Auditor Blaha
This week the OSA released the 2020 Municipal Liquor Store Report.
As a whole, municipal liquor store profits were up by more than 29% in 2020, driven primarily by off-sale stores. This is the 25th consecutive year of record sales.
During our press conference on Thursday (visit the OSA YouTube page for video of the event), we also discussed the drop in on-sale sales compared to 2019. The pandemic challenges these kinds of local government operations faced are why so many of us pushed to add replacing lost revenue as a use for 2021 American Recovery Act funds.
The press release for the report highlights key findings and analysis.
2. Meeting: Volunteer Fire Relief Association Working Group
The State Auditor’s Volunteer Fire Relief Association Working Group will meet on November 3, from 11:00 a.m. to 12:30 p.m.
The meeting will be held remotely via Zoom, and will be live-streamed for those who are interested in watching. The live-stream link, and the meeting agendas and materials, are available on the Working Group page of the OSA website.
3. Released: Pension Newsletter
The October Pension Newsletter has been released. The Newsletter provides updates on the Volunteer Fire Relief Association Working Group and Supplemental State Aid Work Group, both of which are convened by the OSA. The Newsletter also includes tips for keeping SAFES login information secure, and information on avoiding pitfalls related to the deposit of municipal funds.
4. TIF: Review TIF Districts for Decertification Requirements
TIF districts must often be decertified by the end the year in which a duration limit or other decertification requirement is met. This is a good time of the year to review TIF districts for decertification requirements if this has not already been done. Timely decertification avoids improper receipt of tax increments in following years. If you have any questions, please contact us at TIF@osa.state.mn.us.
For decertification requirements, please review the TIF article.
You may find the Confirmation of Decertified TIF District Form on the OSA website.
5. Released: 2020 Municipal Liquor Store Report
The OSA has released the 2020 Analysis of Municipal Liquor Store Operations. The report provides comparative data on liquor store operations which are owned and operated by Minnesota cities.
View the complete report, which includes an Executive Summary, tables, and graphs.
6. Reminder: Special Districts to Report to the Office of the State Auditor
Special Districts are required to report annually to the Office of the State Auditor. Special Districts must complete and submit the Annual Financial Reporting Form (Reporting Form) and Financial Statements or Audit within 180 days of the end of each fiscal year.
The annual Reporting Form and Financial Statements or Audit should be submitted through SAFES.
If you do not have a user name or password for SAFES, please send an email to safes@osa.state.mn.us with the entity name, your name, title, public email and mailing addresses, and public telephone number and you will receive an email with instructions.
We are still receiving information for the 2020 Special Districts with fiscal year ending between July 1, 2020 and June 30, 2021.
7. Avoiding Pitfall: Municipal Liquor Store Internal Controls
Municipal liquor stores are cash businesses which present financial risks that other city functions may not. As a result, cities need to actively monitor liquor store operations.
This Avoiding Pitfall is available on our website.