State Auditor's E-Update - 9/30/2022
1. Message from Auditor Blaha
2. Relief Associations: Pension Newsletter
3. Update: TIF Statements of Position
4. Avoiding Pitfall: Tax Identification Numbers
1. Message from Auditor Blaha
This week Auditor Blaha held a listening session on climate change and the Minnesota State Board of Investment. She was joined by Meketa Investment Group Head of Sustainability, Sarah Bernstein, to present highlights from the Climate Change Investment Analysis Report.
If you were unable to join us for the live listening session, the entire webinar can be found on the OSA YouTube page.
If you have additional comments or feedback, please email outreach@osa.state.mn.us.
2. Relief Associations: Pension Newsletter
The September Pension Newsletter has been released. The Newsletter provides information about 2022 fire state aid payments and a reminder about the deposit of state aid. Information about the effective date for benefit level changes is provided, as well as a notice about a 2022 law change that will eliminate the requirement that each relief association with a defined benefit plan annually determine its maximum allowable benefit level.
3. Update: TIF Statements of Position
All of the statements of position related to tax increment financing (TIF) have been reviewed and updated versions have been posted on the OSA website. Most received minor edits for clarification. More notable changes include:
- TIF Five-Year Rule and Six-Year Rule: Added reference to an extension provided by the 2021 Legislature.
- TIF Interfund Loans: Added 2022 maximum interest rates.
- TIF Pay-As-You-Go Obligations: Added discussion of potential pitfalls and trimmed text to improve focus.
- Redistributions of Tax Increment: Clarified discussion of increment distributed after decertification and update for 2021 law change on timing of notifications for school district distributions.
- TIF Pooling: Added discussion of the treatment of county road costs and updated for a 2021 law change allowing additional pooling for owner-occupied housing.
Statements of position can be found under the “Training + Guidance” menu on the OSA website.
If you have any questions please contact us at TIF@osa.state.mn.us.
4. Avoiding Pitfall: Tax Identification Numbers
We sometimes find organizations that use a public entity’s tax identification number when the organization is not part of the public entity. For example, some entities have employee “Sunshine” clubs where employees chip in money for flowers or cards for other employees. Similarly, employees in a particular department may donate their own funds for parties or banquets.
The Avoiding Pitfall is available on the OSA website.