4.2. SR 07-26-1993 - Laserfiche WebLink

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DEC 30 '91 12:44 TO: 95373279 FROM:CITY OF BKLYN PARK T-339 P.06 . ., .' List G: No Reported Fire State;Nd (3 Relief Associations) .. . . . The relief association omits reporting the amount of fire state aid received by the relief association. ~ List H: Unusually Large Reported Municipal Contribution 1\. (43 Relief Associations) .. . . The reported municipal contributIOn IS very largc~ I.n compa,ns?n ~llh the amount of fire state aid received and the amount of the rdtef aSSOCiation s computed annual financial requirement. e Ust I: Unusually Large Administrative Expenses .. (32 Relief. Associations) .' '" The reported level of admlmstrative expenses is very large In compan::ion with the amount of fire state aid received and the amount of the relief association's computed annual financial requirement and ll:nnIJul benefit p~yout. The problems underlying lists A through F indicate both a misunderstanding of the . requirements of the 1971 Volunteer Firefighters ReHef Association Financing Guidelines Act, Minnesota Statutes, Sections 69.771 through 69.775, and a misstatement of the funding requirements of the various volunteer firefighter relief associations involved. After about 20 years of stale regulation of volunteer firefighter relief association funding. there should be a better level of understanding of their statutory duties by volunt<eer firefighter relief association officials and municipal officials and better monitoring and enforcement by the State Auditor. Other Noncompliance Issues I/l~Hcated by the 196~ ~o[]1pilation Report There are five additional state Jaw compliance - noncompJjanc(~ issues indicated by the 1989 State Auditor's Compilation Report. These issues are: 1. J&1c;k of S~(Yice PensioQ Leyelloformatlun A number of lump sum volunteer firefighter relief associations and all monthly benefit volunteer firefighter relief associations fall to indicate the level of the service pension . that the relief associations provide. Examples include Cannon Falls, Danube. and Madelia. Without information on the level of service pe:nsion promised, it is impossible to galn a sense of compliance with tbe statutory flexible service pension maximums, thereby limiting the statutory compliance determination function of the State Auditor. 2. Service P~nsfon In Excess of Amount permitted for Lev~~l of Financing A number of volunteer firefighter relief associations appear to provide a service pension level greater than is permitted with the current level of financial resources of the relief association. Examples include: e Bethel, which promised $400 per year of service lump sum service pension with financial resources limited to fire state aid of $548 ($27.40 per firefighter); Emily, which promised $535 per year of service lump sum service pension with financial resources lim1ted to fire state aid of $2.493 ($124.65 perfirefjght~~); Hamburg, which promised $350 per year of service lump sum service pension with financial resources limited to fire slale aid of $2,182 ($75.24 per firefighter). If the current financiaf resources of the relief association are representative of ils funding amounts for the prior three years, the service pension levels under the statutory flexible service pension maximums would be $50 per year of service for Bethel, $240 per year of service {or Emily, and S 140 per year of service for Hamburg. 3. ~~rv/ce Pension Ampunt Beyon(j Largest Flexible Servlcl~ Pension Maximum Amount The Anoka Volunteer Firefighter Relief Association is listed as providing .\lump SUIIl service pension of $3,805 per year of service, while the flexible service pension ill Page 2 151191LM