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34 <br />Report on Compliance with Minnesota <br />Legal Compliance Audit Guide for Local Government <br />Page 2 <br />Finding: Declaration for Payment not on Check Stock <br />Criteria: Minnesota Statutes require that municipalities have a declaration for payment <br />signed to the effect that such amount, claim, or demand is just and correct and that no part of <br />it has been paid. Minnesota Statute 471.391 reads as follows: <br />471.391 Declaration form. <br />Subdivision 1. Sufficiency. The declaration provided for in section 471.38 is sufficient if in the <br />following form: `9 declare under the penalties of law that this account, claim or demand is just and correct <br />and that no part of it has been paid. <br />..................................... <br />Signature of Claimant" <br />Subdivision 2. Above check endorsement. The check or order -check by which the claim is paid may <br />have printed on its reverse side, above the space for endorsement thereof by the payee, the following <br />statement: `..rhe undersigned payee, in endorsing this check (or order -check) declares that the sante is <br />received in payment of a just and correct claim against the county (county board of education for <br />unorganized territory, school district, town or city), and that no part of it has heretofore been paid." When <br />endorsed by the payee named in the check: or order -check, such statement shall operate and shall be deemed <br />sufficient as the required declaration of the claim. <br />Condition: The check stock used by the City did not include the required declaration, until <br />October 2006. <br />Cause: The City was not aware of this requirement when they ordered check stock. <br />Effect: The City was not in compliance with this issue and was not meeting the requirements <br />of Minnesota Statute 471.391. <br />Recommendation: We recommend the City add the required declarations to its check stock <br />each time checks are ordered. <br />Views of Responsible Officials and Corrective Action Plan: Upas notification, the City <br />immediately corrected this issue. Checks that were in-house that did not have the declaration <br />printed on the back of the check were returned to the printer for printing of the proper <br />declaration on the remaining in-house check stock. In addition, specifications for ordering <br />new check stock have been refined to ensure the declaration is printed on all future check <br />orders. <br />