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CITY OF GEM LAKE, MINNESOTA 4 SCHEDULE OF FINDINGS: AND RESPONSES (CONTINUED) YEAR ENDED DECEMBER.31, 2016 OTHER. ITEM FOR CONSIDERATION -- MINNESOTA LEGAL COMPLIANCE 2016-003: Prompt Payment of Local Government Bills Criteria: Minnesota Statute §471.425 Subd. 2., requires Cities. to pay each vendor obligation according to terms of the contractor, if no contract terms apply, within the standard. payment period unless the municipality in good faith disputes the obligation. For municipalities who have governing boards which have regularly scheduled meetings at .least once a ninth, the standard payment period. is defined. as with in. 35 days of the date of receipt. Condition: The City paid one invoice outside of the 35 days as defined by the Minnesota Statue. The invoice was paid .approximately 3 months after it was dated. Effect:. The City is not in compliance with the Minnesota Statute requiring prompt payment of local government bills. Cause: The Citypayed jhvoice outside of the 35 days as defined by the Minnesota Statue. Recommendation: We recommend City management. closely monitor payment of invoice to ensure. that they. are paid: in a timely manner.. Management Response:. City management is aware of this requirement and will continue to monitor the requirement to ensure. that payment continue to be made as required. 2016-64.4:.Annual Report of Outstanding Obligations Criteria: Minnesota Statute §471.70, on or before February 1st each year, it shall. be the duty of the principal. accounting officer of each municipality to report to the auditor of each county in which such municipality is situate, the total amount of outstanding obligations, and the purpose for which issued as. of December 31 of the preceding year, Condition: The City did not. submit to Ramsey County the Outstanding Obligations as of February 1 2017.. It was submitted on February 9, 2017: Effect: The City is: not in compliance with the Minnesota Statute requiring the submittal of the Outstanding Obligations as of February 1 of each year. Cause: The City has provided the Outstanding Obligations report in the past but did not submit report by the deadline for 2016. Recommendation: We recommend City management implement a process to trigger the submission of -the Outstanding Obligations report prior to the February 1 deadline each year. Management Response: City management is aware of this requirement and will continue to monitor the requirement to ensure the. Outstanding Obligations report is submitted prior to the deadline. (38)