Agenda - Council - 08/23/1983 - Laserfiche WebLink

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I I ! I I I ! I I I I I I I I I I I I BACKGROUND During 1981 the Office of State Auditor formed a task force of city finance officers to study and propose solutions to the problem of uniform financial reporting for cities in Minnesota. As a result of task force efforts, a Uniform Chart of Accounts was developed and issued for cities with over 2,500 in population. The Chart of accounts had two main objectives: 1) To promote uniform accounting and reporting by Minnesota cities of 2,500 or more in population. 2) To serve as ~ basis for financial accounting and reporting standards by Minnesota cities of 2,500 or more in population. .The Office of State Auditor issued the Uniform Chart of Accounts in December 1981, as an important first step toward uniform financial reporting for Minnesota cities. Since then the Office has promoted its implementation based on the merits of uniformity of financial reporting. The State Auditor has suggested that cities adopt the Chart of Accounts, where practical, or present similar uniformly classified information in their financial statements through modification of their present systems. By 1983, a number of cities had fully or partially adopted the new chart of accounts. LEGISLATION - 1983 In 1983 the Minnesota Legislature made compliance with uniform financial reporting mandatory. Minnesota statutes requiring cities of 2,500 or more in population to submit audited Comprehensive Annual Financial Reports prepared in accordance with Generally Accepted Accounting Principles (GAAP) were not enough to insure sufficient detail and uniformity desired by the Legislature. Chapter 342, Laws of 1983 states in part: ". . . the Legislature must have uniform and current financial information from the governmental units which receive aid distributions.