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CITY OF GEM LAKE <br />SCHEDULE OF FINDINGS AND RESPONSES (CONTINUED) <br />YEAR ENDED DECEMBER 31, 2015 <br /> <br /> <br /> <br />(36) <br /> <br />OTHER ITEM FOR CONSIDERATION – MINNESOTA LEGAL COMPLIANCE <br /> <br />2015-002: Broker Certification <br />Criteria: Minnesota Statute §118A.04, Subd. 9, requires that, a government entity shall provide <br />annually to the broker a written statement of investment restrictions which shall include a provision that <br />all future investments are to be made in accordance with Minnesota Statutes governing the investment <br />of public funds.. <br /> <br />Condition: Neither the City nor its broker were able to provide documentation a broker certification <br />form was completed before any trading activity was conducted during fiscal year 2015. <br /> <br />Effect: The City is not in compliance with the Minnesota Statute requiring a broker certification <br />statement each year. <br /> <br />Cause: The City has provided broker certifications in the past but missed updating it for fiscal year <br />2015. <br /> <br />Recommendation: We recommend City management implement a process to trigger the annual <br />submission of the broker certification statements so as to ensure they are properly providing them on <br />an annual basis, before any trade activity occurs each fiscal year. <br /> <br />Management Response: <br />City management is aware of this requirement and will continue to monitor the requirement to ensure <br />the statements are provided in all future years. <br /> <br />