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CITY OF ELK RIVER <br />SCHEDULE OF FINDINGS AND RECOMMENDATIONS <br />YEAR ENDED DECEMBER 31, 2019 <br />FINDING: 2019-001 PROMPT PAYMENT OF BILLS <br />Type of Finding: Minnesota Legal Compliance Finding <br />Criteria: Minnesota Statute §471.425, requires municipalities and governmental entities to pay each <br />vendor obligation according to the terms of the contract, or if no contract terms apply, within the <br />standard payment period, which is defined as within 35 days from the date of receipt for municipalities <br />which have regularly scheduled board meetings at least once a month. <br />Condition/Context: We noted one disbursement which was not paid within the standard payment <br />period. <br />Effect: The City was not in compliance with state statutes related to payment of local government bills. <br />Cause: The invoice, for the City's liquor operations, was received during a period of staff turnover at <br />the liquor stores and was not properly processed within the 35 day time period. <br />Recommendation: We recommend the City ensure it has procedures in place so that all invoices are <br />paid within the required time period, even during times of change or staff turnover. <br />Views of Management: Management agrees with the finding and recommendation and will continue to <br />review the process of paying invoices and bills <br />