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<br />. <br /> <br />. <br /> <br />. <br /> <br /> <br />LMC <br /> <br />League of Minnesota Cities <br /> <br />145 University Avenue West, St Paul, MN 55103.2044 <br />(651) 281.1200 . (800) 925.1122 <br />Fax: (651) 281.1299 . TOD: (651) 281.1290 <br />www.lmnc.org <br /> <br />~ of Min~otu C7lNM <br />Gtiu prcmwtillB ~C(I <br /> <br />August I, 2002 <br /> <br />TO: <br /> <br />City Managers, Administrators, and Clerks <br /> <br />FROM: <br /> <br />Tom Grundhoefer, LMC General Counsel <br /> <br />RE: <br /> <br />Issues arising out of July 17, 2002 State Auditor Investigative Report to the <br />City of Brooklyn Park <br /> <br />Introduction <br /> <br />The Office ofthe State Auditor (OSA) recently issued a report "questioning" various spending <br />practiees of the City of Brooklyn Park. Since the report was issued, the League has had a <br />number of calls from city officials asking our reaction to some of the issues discussed in the <br />report. It is our sense that some of the practices addressed by the OSA may be eommon in other <br />citics. Accordingly, we thought it might be helpful for the League to put in writing some of our <br />thoughts regarding certain issued addressed by the OSA. <br /> <br />At the outset, we want to make clear that this memo does not deal with all of the matters raised <br />by the OSA, nor should it be taken as an eneouragement or a recommendation by the League to <br />disregard the observations made by the OSA, As always, decisions about city spending policies <br />and practiees are largely a matter of local concern and ought to be thoughtfully discussed and <br />analyzed at the city council level. In addition, because many of the issues fall into what might be <br />considered the "gray area," we encourage you to consult with your city attorney about this topic. <br /> <br />Background <br /> <br />As an initial matter, it may be useful to make a eomment on the legal effect of the auditor's <br />opinion on Brooklyn Park and other cities. Under Minn. Stat. SS 6.49 and 6.50, the OSA has the <br />responsibility to supervise the financial aceounts of Minnesota cities and to conduct an <br />examination of city aceounts and records as the "State Auditor may deem the public interest to <br />demand." Pursuant to these powers, the OSA investigated complaints about Brooklyn Park's <br />expenditure practices, and issued a report finding that a number of the city's expenditures were <br />"questionable," As it stands, the report is an advisory opinion to the eity. Howcver, in the case <br />of findings of suspected violations oflaw, the Auditor is required to send a eopy of the report to <br />the city attorney and/or county attorney for review for possible prosecution, A representative of <br />the OSA has indicated that a copy of the Brooklyn Park report was forwarded to the eity and <br />county attorncy, although he said that most of the issues addressed in the document did not rise <br /> <br />AN EQUAL OPPORTUNITY jAfFlRMATlVE ACTION EMPLOYER <br />