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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 WITHHOLDING AFFIDAVIT <br />Criteria — Minnesota Statute § 270C.66. <br />Condition — 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 — One contract we tested was not in compliance with this statute. This is a current <br />year finding. <br />Cause — This was an oversight by city personnel. <br />Effect — One contract undertaken in 2014 was not in compliance with this statute. <br />Recommendation — 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 — 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 PAYROLL PAYMENT DECLARATION <br />Criteria —Minnesota Statute § 412.271, Subd. 2. <br />Condition — 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 — The required declaration was not obtained for 1 of 25 payroll disbursements tested. <br />This is a current year finding. <br />Cause — The City's Fire Department was using time reports that did not include the <br />declaration. <br />Effect — The City made payroll disbursements for which it did not obtain the required <br />statutory declarations. <br />Recommendation — 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 — 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 />