Management Report and Recommendations 12/31/1984

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City of Lino Lakes, Minnesota Management Report, Page 38 The State Auditor anticipates establishing formal procedures in the following areas: • Deposits and investments. Approval of official depositories of the city and the providing of security of all deposits which are not insured by the Federal Government. • Contracts and bidding. Bid and quote procedures performed by the City to assure that all contractual purchases are in compliance with existing State Statute. • Public indebtedness. Various statutory restrictions on types of debt. • Claims and disbursements. Purchasing and disbursing procedures of the City. • Conflicts of interest. Evidential matter regarding the financial interest of public officials in any sale, lease or contract of the City. Our current audit procedures address most of the above areas. Increased procedures mandated by the State may increase the scope of procedures required. Statutes do not prohibit official's having an interest in businesses which the City contracts with, however, it does require that such relationships are disclosed and that no bias is exercised in the contractual arrangement over other potential vendors. Excerpts from applicable statutes are as follows: 471.87 PUBLIC OFFICERS, INTEREST IN CONTRACT; PENALTY. Except as authorized in section 471.88, a public officer who is authorized to take part in any manner in making any sale, lease, or contract in his official capacity shall not voluntarily have a per- sonal financial interest in that sale, lease, or contract or per- sonally benefit financially therefrom. Every public officer who violates this provision is guilty of a gross misdemeanor. 471.88 EXCEPTIONS. Subd. 1. The governing body of any port authority, seaway port authority, town, school district, hospital district, county, or city, by unanimous vote, may contract for goods or services with an interested officer of the governmental unit in any of the following cases.