Laserfiche WebLink
CITY OF MOUNDS VIEW <br /> <br />Schedule of Findings and Responses (continued) <br />Year Ended December 31, 2024 <br /> <br /> <br /> <br />-7- <br />C. MINNESOTA LEGAL COMPLIANCE FINDINGS (CONTINUED) <br /> <br />2024-003 Withholding Affidavit <br /> <br />Criteria – Minnesota Statutes § 270C.66. <br /> <br />Condition – Before making final settlement with any contractor under a contract requiring <br />the employment of employees for wages by said contractor or subcontractors, the City must <br />obtain a certificate by the Commissioner of Revenue that the contractor or subcontractor has <br />complied with the withholding requirements of Minnesota Statutes § 270C.66 (either a <br />Commissioner of Revenue Form IC134 or a Contractor’s Withholding Affidavit). The City <br />did not obtain the required certificate for one contract completed during fiscal 2024. <br /> <br />Questioned Costs – Not applicable. <br /> <br />Context – One of two contracts tested was not in compliance. <br /> <br />Repeat Finding – This is a current year finding. <br /> <br />Cause – This was an oversight by city personnel. <br /> <br />Effect – The City did not obtain the required documentation of either a Commissioner of <br />Revenue Form IC134 or a Contractor’s Withholding Affidavit prior to making the final <br />payment. <br /> <br />Recommendation – We recommend that the City review contract payment procedures in <br />place to ensure future compliance with this statute. <br /> <br />Management Response – There is no disagreement with the audit finding. The City will <br />review requirements with appropriate staff to assure the planned controls are being followed <br />and the required Commissioner of Revenue Form IC134 or a Contractor’s Withholding <br />Affidavit are obtained prior to making the final payment.