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CITY OF GEM LAKE <br />Schedule of Findings and Responses (continued) <br />Year Ended December 31, 2021 <br />FINDINGS — MINNESOTA ,LEGAL. COMPLIANCE AUDIT <br />2021-002. CLAtn1S AND D.IsBLIRSEMF.NTS — TIMELY PAYNI..EtrT <br />Criteria — Minnesota Statutes §. 471 A25, Subd. 2. <br />Condition —Minnesota Statutes require prompt payment of local government bills within a <br />standard payment. -period of 35 days from the receipt.of goods and services for governing <br />boards that rn'eet at leastonce.a month. if such obligations are not paid. within.the :appropriate <br />time period, local governments must pay interest on the obligations at the rate: of <br />1.5 percent per mbnth-*or part of a month. One .of twenty-five -disbursements tested was* not <br />paid within the statutory time limit. <br />Questioned Costs —Not applicable. <br />Context — One of twenty-five disbursements tested was not in compliance, <br />. Reppet Flodibg — Thin is a current year finding only.. <br />Cause —This was:an:oversight.by city personnel. <br />Effect— Certain payments made to vendors were not paid -within the timeframe as required <br />by state statutes. <br />Recommendadqu —We. Fecominend *the City review claims and disbursements payment <br />procedures in place to ensurethatAll invoices are paid within statutory requirements. <br />Management Response— There is no disagreement with the audit.fnding. The City. will <br />.review its claims atid. disbursements payment. procedures to ensure future compliance. with <br />Minnesota Statutes. <br />v <br />-36- <br />