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CITY OF RAMSEY <br />Schedule of Findings and Responses <br />Year Ended December 31, 2014 <br />FINDINGS – MINNESOTA LEGAL COMPLIANCE AUDIT <br />2014-001 WA <br />ITHHOLDINGFFIDAVIT <br />Criteria <br />– Minnesota Statute § 270C.66. <br />Condition <br /> – Minnesota Statute requires political subdivisions, before making final settlement <br />with any contractor under a contract requiring the employment of employees for wages by <br />said contractor or subcontractors, to obtain a certificate from the Commissioner of Revenue <br />that the contractor or subcontractor has complied with the withholding requirements of <br />Minnesota Statute § 290.92. <br />Context <br />– One contract we tested was not in compliance with this statute. This is a current <br />year finding. <br />Cause <br />– This was an oversightby city personnel. <br />Effect <br />– One contract undertaken in 2014 was not in compliance with this statute. <br />Recommendation <br /> – We recommend that the City of Ramsey, Minnesota (the City) review <br />current procedures in place to ensure that certificates are obtained prior to making final <br />settlements. <br />Management Response <br /> – There is no disagreement with the audit finding. The City will <br />review its procedures to ensure that certificates are obtained in the future. <br />2014-002 PPD <br />AYROLLAYMENT ECLARATION <br />Criteria <br />– Minnesota Statute § 412.271, Subd. 2. <br />Condition <br /> – Prior to making payments for wages, the City is required to obtain a written <br />declaration indicating the facts recited on the payroll are correct to the best of the declarant’s <br />information and belief. This declaration was not obtained for one payroll disbursement tested <br />that was paid during the year ended December 31, 2014. <br />Context <br />–The required declaration was not obtained for 1 of 25 payroll disbursements tested. <br />This is a current year finding. <br />Cause <br /> – The City’s Fire Department was using time reports that did not include the <br />declaration. <br />Effect <br />– The City made payroll disbursements for which it did not obtain the required <br />statutory declarations. <br />Recommendation <br /> – We recommend that the City obtain these signed declarations for all <br />future payroll claims by having the declaration preprinted above the endorsement line of all <br />timesheets. <br />Management Response <br /> – There is no disagreement with the audit finding. The City will <br />review its procedures to ensure that appropriate declarations are obtained in the future. <br />-4- <br /> <br />