Agenda - Council - 06/14/2022 - Laserfiche WebLink

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CITY OF RAMSEY Schedule of Findings and Responses Year Ended December 31, 2021 A. FINANCIAL STATEMENT FINDINGS None. B. MINNESOTA LEGAL COMPLIANCE FINDINGS 2021-001 GROUP INSURANCE REQUEST FOR PROPOSAL Criteria—Minnesota Statutes § 471.6161. Condition — A city that provides group insurance for 25 or more employees shall request proposals from and enter into contracts with entities that in the judgment of a city are best qualified to provide coverage. The request for proposals shall be in writing and at a minimum shall include: coverage to be provided, criteria for evaluation of proposals, and the aggregate claims records for the appropriate period. Public notice of the request for proposals must be provided in a newspaper or trade journal at least 21 days before the final date for submitting proposals. The City of Ramsey, Minnesota (the City) did not comply with this statute for one group insurance contract entered into during fiscal year 2021. Questioned Costs—Not applicable. Context— One contract tested was not in compliance. The noncompliant contract was dental insurance. Repeat Finding—This is a current year finding. Cause—This was an oversight whereas the request for proposal processes are performed by a third party administrator and not performed in this case. Effect — The City did not follow state statutes for group insurance request for proposals before entering into a new contract when the plan changed from employee-funded to city-funded. Recommendation — We recommend that the City review group insurance request for proposal procedures and obtain required documentation for future contracts. View of Responsible Official and Planned Corrective Actions — The City agrees with the finding. The City will review its procedures relating to group insurance request for proposal to ensure compliance in the future. -4-