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