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<br /> <br />Memorandum <br /> <br />TO: Mounds View Economic Development Authority and Mr. Jim Ericson <br />FROM: Jenny Boulton, Briggs and Morgan <br />DATE: August 7, 2008 <br />RE: EDA Organizational Matters <br /> <br /> <br />In connection with your questions regarding Minnesota Statutes, Section 469.096, I <br />spoke to Dave Kinney and Tom Carlson at the Office of the State Auditor. Generally, they <br />did not see problems with the manner in which the Mounds View Economic Development <br />Authority (the “EDA”) is currently conducting its operations. <br />Minnesota Statutes, Section 469.096 Subd. 9 provides: <br />Financial statement. The authority's detailed financial statement must show all <br />receipts and disbursements, their nature, the money on hand, the purposes to <br />which the money on hand is to be applied, the authority's credits and assets, <br />and its outstanding liabilities in a form required for the city's financial <br />statements. The authority shall examine the statement together with the <br />treasurer's vouchers. If the authority finds that the statement and vouchers are <br />correct, it shall approve them by resolution and enter the resolution in its <br />records. <br /> <br />In Dave Kenney’s and Tom Carlson’s view, because the EDA Board is composed of <br />the members of the Mounds View City Council, it would be treated as blended component <br />unit for accounting purposes so that the City’s financial statement would include the <br />financial information regarding the EDA and would be the EDA’s financial statement, as <br />well, for purposes of Minnesota Statutes, Section 469.096 Subd. 9. <br />Minnesota Statutes, Section 469.096 Subd. 8 provides: <br />Checks. An authority check must be signed by the treasurer and one other <br />officer named by the authority in a resolution. The check must state the name <br />of the payee and the nature of the claim that the check is issued for. <br /> <br />In Tom Carlson’s view there was no need for the City to have a separate checking <br />account (apart from the FDIC $100,000 insurance limit on each account) so that payments <br />could be made on behalf of the EDA from the City’s checking account and signed by the <br />City’s treasurer in satisfaction of Minnesota Statutes, Section 469.096 Subd. 8. He did, <br />however, recommend that the EDA Board adopt a resolution or sign a formal delegation of <br />that duty to the City’s treasurer.