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CITY OF GEM LAKE SCHEDULE OF FINDINGS AND RESPONSES (CONTINUED) YEAR ENDED ❑ECEM13ER 31,. 2016 OTHER.ITEM FOR CONSIDERATION = MINNESOTA LEGAL COMPLIANCE 2016-003: Prompt Payment of Local Government gills Criteria: Minnesota Statute §471.425, 5ubd. 2, requires Cities to pay each vendor obligation:according to terms of the contract or, if no contract terms .apply, within the standard payment period unless the .municipality in good faith disputes. the obligation. For municipalities who have govern ing boards which have regularly scheduled meetings at least once a month, the standard payment period is defined as within 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 City payed invoice outside of the,35 days as'defined bythe. 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 cont€Rue to be made as required. 2016-004: Annual Report of Outstanding �htigati6ns Criteria: Minnesota. Statute,.§471:70, on: or beford;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 1SF 2017. It was<submitted on February 9.;: 2a17. Effect: The ;'City is not in compliance. With the Minnesota Statute requiring the submittal of the Outstanding Obiigations.as of February 1st of each year. Cause: The City f4k 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 '1st 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: (37)