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CITY OF MOUNDS VIEW <br /> Schedule of Findings and Responses(continued) <br /> Year Ended December 31,2025 <br /> B. MINNESOTA LEGAL COMPLIANCE FINDINGS <br /> 2025-002 Claims and Disbursements <br /> Criteria—Minnesota Statutes §471.425, Subd. 2. <br /> Condition — Minnesota Statutes require prompt payment of local government bills within a <br /> standard payment period of 35 days from the receipt of goods and services for governing <br /> boards that meet at least once a month. If such obligations are not paid within the appropriate <br /> time period, local governments must pay interest on the unpaid obligations at the rate of <br /> 1.5 percent per month or part of a month. Of the disbursements tested, 1 of 40 disbursements <br /> were not paid within the statutory time limit. <br /> Questioned Costs—Not applicable. <br /> Context—Of the disbursements tested, 1 of 40 disbursements were not in compliance. <br /> Repeat Finding—This is a current year and prior year finding. <br /> Cause—This was an oversight by city personnel. <br /> Effect — Certain payments made to vendors were not paid within the timeframe as required <br /> by state statutes. <br /> Recommendation—We recommend that the City review claims and disbursements payment <br /> procedures in place to ensure that all invoices are paid within statutory requirements. <br /> Management Response — There is no disagreement with the audit finding. The City will <br /> review its procedures in place to ensure future compliance with Minnesota Statutes. <br /> -6- <br />