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CITY OF RAMSEY <br />Schedule of Findings and Responses <br />Year Ended December 31, 2024 <br />A. FINANCIAL STATEMENT FINDINGS <br />None noted. <br />B. MINNESOTA LEGAL COMPLIANCE FINDINGS <br />2024-001 SUBCONTRACTOR LANGUAGE <br />Criteria — Minnesota Statutes § 471.425, Subd. 4a. <br />Condition — For each contract between the City of Ramsey, Minnesota (the City) and a prime <br />contractor, Minnesota Statutes require contract language be included that mandates the prime <br />contractor to pay subcontractors within 10 days of receipt of payment from the government <br />entity or pay interest at the rate of 1.5 percent per month or any part a month. For <br />one contract tested in the current year, the required language to pay subcontractors within 10 <br />days was not included in the contract. <br />Questioned Costs — Not applicable. <br />Context — One of three contracts tested was not in compliance. <br />Repeat Finding — This is a current year finding. <br />Cause — This was an oversight by city personnel. <br />Effect — The contract between the City and a prime contractor did not include language to <br />pay subcontractors within 10 days of payment as required by state statute. <br />Recommendation — We recommend that the City review contract and bid law procedures in <br />place to ensure future compliance with this statute. <br />Management Response — There is no disagreement with the audit finding. The City will <br />review requirements with appropriate staff to ensure the planned controls are being followed <br />and essential language is included in future contracts to pay subcontractors as required by <br />state statute. <br />-5- <br />