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CITY OF LITTLE CANADA <br />SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) <br />YEAR ENDED DECEMBER 31, 2020 <br /> <br /> <br /> <br />(10) <br /> <br />Section II – Financial Statement Findings <br /> <br />None noted. <br /> <br />Section III – Findings and Questioned Costs – Major Federal Programs <br /> <br />Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a). <br /> <br />Section IV – MN Legal Compliance Findings <br /> <br />FINDING: 2020-001 PROMPT PAYMENT OF BILLS <br /> <br />Type of Finding: Minnesota Legal Compliance Finding <br /> <br />Criteria: Minnesota Statute §471.425, requires municipalities and governmental entities to pay each <br />vendor obligation according to the terms of the contract, or if no contract terms apply, within the <br />standard payment period, which is defined as within 35 days from the date of receipt for municipalities <br />which have regularly scheduled board meetings at least once a month. <br /> <br />Condition/Context: We noted one disbursement which was not paid within the standard payment <br />period. <br /> <br />Effect: The City was not in compliance with state statutes related to payment of local government bills. <br /> <br />Cause: The invoice was received outside the finance department and was not forwarded in a timely <br />manner. <br /> <br />Recommendation: We recommend the City make every effort possible to ensure that invoices are <br />paid within the statutory requirements. <br /> <br />Views of Management: Management agrees with the finding and recommendation and will continue to <br />review the process of paying invoices and bills. <br /> <br /> <br /> <br />