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<br /> <br />LMC <br /> <br />145 University Avenue West, St. Paul, MN 55103-2044 <br />phone: (651) 281-1200 . (800) 925-1122 <br />TDD (651) 281-1290 <br />LMe Fax: (651) 281-1299 . LMCIT Fax: (651) 281-1298 <br />Weh Site: http://www.1mnc.org <br /> <br />League of Minnesota Cities <br />Cities promoting e#CGUence <br /> <br />August 1, 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 <br />to the City of Brooklyn Park <br /> <br />Introduction <br /> <br />The Office of the State Auditor (OSA) recently issued a report "questioning" various <br />spending practices of the City of Brooklyn Park. Since the report was issued, the League <br />has had a number of calls from city officials asking our reaction to some of the issues <br />discussed in the report. It is our sense that some of the practices addressed by the OSA <br />may be common in other cities. Accordingly, we thought it might be helpful for the <br />League to put in writing some of our thoughts regarding certain issued addressed by the <br />OSA. <br /> <br />At the outset, we want to make clear that this memo does not deal with all of the matters <br />raised by the OSA, nor should it be taken as an encouragement or a recommendation by <br />the League to disregard the observations made by the OSA. As always, decisions about <br />city spending policies and practices are largely a matter of local concern and ought to be <br />thoughtfully discussed and analyzed at the city councilleve!. In addition, because many <br />of the issues fall into what might be considered the "gray area," we encourage you to <br />consult with your city attorney about this topic. <br /> <br />Background <br /> <br />As an initial matter, it may be useful to make a comment on the legal effect of the <br />auditor's opinion on Brooklyn Park and other cities. Under Minn. Stat. SS 6.49 and 6.50, <br />the OSA has the responsibility to supervise the financial accounts of Minnesota cities and <br />to conduct an examination of city accounts and records as the "State Auditor may deem <br />the public interest to demand." Pursuant to these powers, the OSA investigated <br />complaints about Brooklyn Park's expenditure practices, and issued a report finding that <br />a number of the city's expenditures were "questionable." As it stands, the report is an <br /> <br />AN EQUAL OPPORTUNITY! AFFIRMATIVE ACTION EMPLOYER <br />