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HomeMy WebLinkAboutTransmittal Letters 4-23-76 DELA►HUNT VOTO & CO.. LTD. CERTIFIED PUBLIC ACCOUNTANTS WHITE BEAR LAKE. MINNESOTA 55110 PHONE 426 -9263 P. 0. BOX 8678 April 23, 1976 To the Honorable Mayor and Members of the City Council City of Oak Park Heights Route #1 Stillwater, MN 55082 Gentlemen: Enclosed are eight copies of the financial statements for the City of Oak Park Heights, Minnesota, for the year ended December 31, 1975. We have forwarded an additional copy directly to the State Auditor's office. We thank you for the audit engagement and thank Mr. Heuer for the aid and cooperation he gave us during our field work. If you have any questions please call us. Very truly yours, DE LA HUNT VOTO & CO., LTD. 45�e�q. Robert J. Voto, CPA RJV /co end /8 cc: Correspondence File Financial Statement File MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS DELAHUNT VOTO & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS WHITE BEAR LAKE. MINNESOTA 55110 PHONE 426 -3263 P. O. BOX 8678 April 23, 1976 Mr. Robert W. Mattson State Auditor Veteran Service Building St. Paul, Minnesota 55155 Dear Mr. Mattson: Enclosed is a copy of the financial statements of the City of Oak Park Heights. Minnesota, for the year ended December 31, 1975. If you have any questions, please call us. Very truly yours, DE LA HUNT VOTO & CO., LTD. Robert J. Voto, CPA RJV /co enc cc: Correspondence File Financial Statement File City of Oak Park Heights i. MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS DELAHUNT VOTO a CO.. LTD. CERTIFIED PUBLIC ACCOUNTANTS WHITE BEAR LAKE. MINNESOTA 55110 PHONE 426 -3263 P. O. BOX 8678 April 23, 1976 To the Honorable Mayor and Members of the City Council City of Oak Park Heights 6141 Panama Avenue North Stillwater, Minnesota 55082 Gentlemen: You have recently received the financial statements, audit report and audit comments of our examination of the finanical statements of the City for the year ended December 31, 1975. As part of our examination, we made a review of the City's policies and procedures regarding purchasing. Purchasing by a Minnesota municipality is governed by Minnesota Statutes, Section 471:345 (The Uniform Municipal Con- tracting Law), which defines specific procedures which must be followed by a Minnesota municipality when making purchases of amounts in excess of $1,000. That Statute reads (in part) as follows: "SUBD. 1 - MUNICIPALITY DEFINED - For purposes of this section, ''municipality" means a county, town, city, school district or other municipal corporation or political subdivision of the state authorized by law to enter into contracts. SUBD. 2 - CONTRACT DEFINED - A "contract" means an agreement entered into by a municipality for the sale or purchase of supplies, materials, equipment or the rental thereof, or the construction, alteration, repair or maintenance of real or personal property. SUBD. 3 - CONTRACTS OVER $5,000 - If the amount of the contract is estimated to exceed $5,000, sealed bids shall be solicited by public notice in the manner and subject to the requirements of the law governing contracts by the particular municipality or class thereof provided that with regard to repairs and maintenance of ditches, bids shall not be required if the estimated amount of the contract does not exceed the amount specified in section 106.471, subdivision 2. SUBD. 4 - CONTRACTS FROM $1,000 to $5,000 - If the amount of the contract is estimated to exceed $1,000 but not to exceed $5,000, the contract may be made either upon sealed bids or by direct negotiation, by obtaining two or more quotations for the purchase or sale when possible, and without advertising for bids or otherwise complying with the requirements of competitive bidding. All quotations obtained shall be kept on file for a period of at least one year after receipt thereof. MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS - C' i ty of Oak Park He i ght— April 23, 1976 Page - 2 - SUBD. 6 - APPLICABILITY OF OTHER LAWS - The purpose of this section is to establish for all minicipalities, uniform dollar limitations upon contracts which shall or may be entered into on the basis of competitive bids, quotations or purchase or sale in the open market. To the extent inconsistent with this purpose, all laws governing contracts by a particular municipality or class thereof are superseded. In all other respects, such laws shall continue applicable." During 1975, the City expended the following amounts not in conformity with the procedures described in M.S.A., Section 471.345, Subdivision 4 above. VOUCHER NUMBER PAYEE AMOUNT 5738 Miller Excavating Co. $ 1,599.00 5943 Miller Excavating Co. 1,090.50 5996 Joe Bjorkman 2 6005 Mike McPhillips 1,496.50 6012 Game Time 2,546.00 6081 Miller Excavating Co. 1 0 659.75 6161 Tower Asphalt Co. 2,246.13 6187 Miller Excavating Co. 4,044.81 6255 Miller Excavating Co. 1.046.00 Total $17.986.09 Also during 1975, the City expended the following amounts not in conformity with the procedures described in M.S.A. Section 471.345, Subdivision 3 above. VOUCHER NUMBER PAYEE AMOUNT 6329 Miller Excavating' $ 6 6426 Wendts Tree, Shrub and Lawn Care 9.558.78 Total S l 5.849 The above information is based upon our review of the City's purchasing pro- cedures, data accumulated during our examination and data and input provided by the City Clerk - Treasurer and City Attorney. This information indicates evidence that the City was not in compliance with M.S.A., Section 471.345. We recommend the following course of action: (1) That the City officials consult legal counsel as to any contingent liability existing as a result of the above, and (2) That the City Officials take specific action to establish proper procedures and policies with respect to purchasing to comply with M.S.A. Section 471.345. . City of Oak Park Height April 23, 1976 Page-3- In accordance with Minnesota Statute and the City Attorney's concurrence, we have forwarded copies of this report to the following: Mr. Robert W. Mattson State Auditor Veteran Service I3h i 1 d i ng St. Paul, MN 55155 Mr. Robert Kelly Washington County Attorney 14900 - 61st Street No. Stillwater, MN 55082 Respectfully submitted, DE LA HUNT VOTO & CO., LTD. Robert J. Voto, CPA