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CITY OF GEM LAKE <br /> <br />Schedule of Findings and Reponses (continued) <br />Year Ended December 31, 2021 <br /> <br /> <br /> <br />-37- <br />FINDINGS – MINNESOTA LEGAL COMPLIANCE AUDIT (CONTINUED) <br /> <br />2021-003 CLAIMS AND DISBURSEMENTS – SUPPORT FOR PAYMENTS <br /> <br />Criteria – Minnesota Statutes § 412.271. <br /> <br />Condition – Minnesota Statutes require where a claim for money due on goods or services <br />furnished can be itemized in the ordinary course of business, the person claiming payment, or <br />the claimant’s agent, shall prepare the claim in written items. One of twenty-eight <br />disbursements tested did not have a claim in writing to support the payment made. <br /> <br />Questioned Costs – Not applicable. <br /> <br />Context – One of the twenty-eight disbursements tested were not in compliance. <br /> <br />Repeat Finding – This is a current year finding only. <br /> <br />Cause – This was an oversight by city personnel. <br /> <br />Effect – Certain payments made to vendors were not supported by a claim in writing as <br />required by state statutes. <br /> <br />Recommendation – We recommend the City review claims and disbursements payment <br />procedures in place to ensure that all payments are supported by a claim in writing. <br /> <br />Management Response – There is no disagreement with the audit finding. The City will <br />review its claims and disbursements payment procedures to ensure future compliance with <br />Minnesota Statutes.