HomeMy WebLinkAboutLetter of Transmittal . ��IVl��ddplll�l lIIIIIY8�1.�I�klV�i�l' I
� — h
u
f
i 2
I
1
,I
F
ONVA
Wad
- SA -��Axam
lo
_ 3 f
saw _�
J,
- 3
d
— d
i'
-
' '� ' °' — 11�dVl iII��VIYJI��I,'r �luVl, ViVVV�lh�b '�n✓1W�.����,W61W'��Yh� -''"
City of Oak Park Heights, Minnesota
Legal Compliance Report, Page 2
FINDING: Lack of Endorsement. on Claims
CONDITION: The City does not employ a claims system. This is not uncommon for Minnesota
cities. There is a statutory requirement which outlines the disbursing process and
refers to approvals based on a claim system. The City does have alternate
approval mechanisms which provide reasonable assurances that authorized
amounts are disbursed The lack of claim procedures as referred to in Minnesota
statutes may be considered noncompliance with statutes.
CRI'T'ERIA: Minnesota Statute 412.271, Subd. 3 reads as follows:
412.271 DISBURSEMENTS.
Subd. 3. Endorsement on claims. The clerk shall endorse
on each claim required to be audited by the council the word
"disallowed" if such be the fact, or, "allowed in the sum of
$........," if approved in whole or in part, specifying in the latter
case the items rejected. Each order shall be drawn that when signed
by the treasurer in an appropriate space, it becomes a check on the
city depository. Such order -check may have printed on its reverse
side, above the space for endorsement thereof by the payee, the
following statement: "The undersigned payee, in endorsing this
order - check, declares that the same is received in payment of a just
and correct claim against the city of ............. and that no part of
such claim has heretofore been paid." When endorsed by the payee
named in the order - check, such statement shall operate and shall be
deemed sufficient as the required declaration of the claim. Any
order presented to the treasurer and not paid for want of funds shall
be so marked and paid in the order of its presentation with interest
from the date of presentation at the rate of five percent or such lower
rate as is fixed by the council prior to its issuance.
RECOMMENDATION:
Our office has requested clarification of this issue from the Office of the State
Auditor regarding the applicability of MS 412.271.
E
City of Oak Park Heights, Minnesota
Legal Compliance Report, Page 3
FINDING: General Fund Levy in, Exc of Levy Limitation
CONDITION: The 1989/1990 property tax levy certified to the County was in excess of the
City's lawful levy limitation. The certification inadvertently included the bonded
indebtedness levies with the General Fund levy.
ACTION TAKEN BY CITY:
In an agreement with the Commissioner of Revenue for the State of Minnesota
dated September 24, 1990, the City agreed to reduce their 1990/91 levy subject to
the levy limitation by an amount equal to the 1989/90 excess levy.
City of Oak Park Heights, Minnesota
Legal Compliance Report, Page 4
Further, for items not tested, based on our examination and the procedures referred to above,
nothing came to our attention to indicate that the City of Oak Park Heights, Minnesota had not
complied with such legal provisions.
This report is intended solely for the use of the City of Oak Park Heights, Minnesota and should
not be used for any other purpose. This restriction is not intended to limit the distribution of this
report which is a matter of public record.
Respectfully submitted,
1A
VOTO, TAUTGES, REDPATH & CO., LTD.
Certified Public Accountants
February 15, 1991