HomeMy WebLinkAboutLegal Compliance Audit VOTO, TAUTGES, REDPATH & CO., LTD.
CERTIFIED PUBLIC ACCOUNTANTS \W�
/ Birch Lake Professional Building • 1310 E. Hwy. 96 0 White Bear Lake, MN 55110 • Phone 426 -3263 \
ROBERT 1.VOTO,CPA
ROBERT G. TAUTGES, CPA
JAMES S. REDPATH, CPA
To the Honorable Mayor and
Members of the City Council
City of Oak Park Heights, Minnesota
We have examined the combined financial statements of the City of Oak Park
Heights, as of and for the year ended December 31, 1987, and have issued our
report thereon dated February 26, 1988. Our examination was made in accordance
with generally accepted auditing standards and the provisions of the Minnesota
Legal Compliance Audit Guide for Local Government promulgated by the Legal
Compliance Task Force pursuant to Minnesota Statutes Section 6.65. Accordingly,
the examination included such tests of the accounting records and such other
auditing procedures as we considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Guide for Local Government covers five main
categories of compliance to be tested: contracting and bidding,' deposits and
investments, conflicts of interest, public indebtedness, and claims and disburse-
ments.
Our study included all of the above listed categories. The results of our tests
indicate that for the items tested, the City of Oak Park Heights complied with
the material terms and conditions of applicable legal provisions except as
described below:
MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • PRIVATE COMPANIES PRACTICE SECTION
MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
GOVERNMENT FINANCE OFFICERS ASSOCIATION • MINNESOTA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS
City of Oak Park Heights, Minnesota
Legal Compliance Audit, Page 2
FINDING: Lack of Endorsement on Claims
CONDITION: The City does not employ a claim 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 non-
compliance with statutes.
CRITERIA: MS 412.271 reads in part 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 so 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 the
MS 412.271. Pending the result of this request, we will advise
the City of required corrective actions (if any). There is
pending 1988 legislation to amend the applicable statute.
City of Oak Park Heights, Minnesota
Legal Compliance Audit, Page 3
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 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,
VOTO, TAUTGES, REDPATH & CO., LTD.
Certified Public Accountants
February 26, 1988