Agenda Packets - 1989/02/06 - Laserfiche WebLink

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city of Mounds view, Minnesota Management Report, page 26 Legal Compliance IVY li16t*r 46-ftnT Minnesota Statutes 6.65 has increased the scope of audit procedures which will be required to complete the audit of the annual financial report of the City of Mounds View `-- --�-- t;ith the 1985 1j,3it. ".ha Statute reads as follows: 6.65 MINIMUM PROCZDCnS rOR AUDITOp_, PRESCRIBED, The state auditor shall prescribe minimum procedures and the audit scope for auditing the books, records, accounts, and affairs of local governments in Minnesota. The minimum scope for audits of all local governments shall include financial and legal compliance audits for fiscal years ending after January 15, 1784, The state auditor shall establish a task force to promulgate an audit guide for legal compliance audits. The ta^k force shall include representatives of the state auditor, the attorney general, towns, cities, counties, school districts and private sector public accountants. The formal guidelines have not yet been issued'by the office of the State Auditor as directed by the Statutes. The primary reason for the delay is the fact that the ilegislature passer the law and did not provide eny funds for the otate Auditor to research and establish procedures and guidelines. The State Auditor anticipates establishing formal procedures in the following areas: • Deposits and investments. Approval of official depositories of the city Edths providing of security of all deposits which are not insured by the Federal oovurnment. • Contracts and bidding. aid and quote procedures performed by the City to assure that all contractual purchases are in compliance with existing State Statute. • Public indebtedness. various stututory restrictions on types of debt. • Claims and disbursements. Purchasing and disbursing procedures of the C4 ty. ' Conflicts of interest. Evidential matter regarding the financial interest of public officials in any sale, lease or contract of the City. e our current audit procedures address most of the above areas. Increased procedures �% mandated by the State may incrrase the scope of procedures required.