11-26-1984 Council Packet - Laserfiche WebLink

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associations only 1369 havF; a legal audit requirement and of those the state auditor has mandatory audit responsibility for 370. The Auditor is suggesting that generally accepted auditing standards (GAA00) are implemented in Minnesota, that uniform accounting and reporting be standardized for all units, and that all units meet uniform auditing standards. It is further proposed that all units have an audit requirement (reporting requirements for vci-y small units) and fall under the jurisdiction of the state auditor whose office would be empowered to audit each unit once every four years. Fees would be related to actual cost. The local units of government would be expected to select an audit firm with the approval of the state auditor. Only audit firms passing a peer review (process established by State Auditor) would qual ''y for doing audits. The state auditor would prescribe all Qtandards, procedures, and reporting requirements. While the AMM find] merit in the goal of achieving a higher degree of efficiency and accountability, it is questionable if it is necessary to create a burgeoning bureaucracy that would in effect dictate which audit forms are acceptable beyond the standards of education and competency already in place. Do all units really need to comply with a stardard audit which may imply costly conversion to accrual accounting? Most units under 2500 population are on a cost basis, while all units above that use accrual or modified accrual. Is there really a need to standardize reporting between cities and schools, or schools and counties? Reporting within individual types of local units is already fairly well standardized. the auditor currently reviews all audits and can make suggestions on reporting or procedure modifications. This proposal appears to suggest moving away from a well working private sector service to a larger more controlled governmental operation. It implies greater cost in times when all units of government are trying to reduce costs. THE AMM OPPOSES AS UNNECESSARY THE STATE AUDITOR HAVING ADDITIONAL IN HOUSE AUDIT AUTHORITY AND THE ASSUMPTION QjF. POWER TO D014#4WOR APPROVE AUDIT FIRMS FOR CITIES. •P'EVtH:: II-T PERA BENEFITS, FINANCING, AND ADMINISTRATION The following principles should govern any changes the legi:>lature makes in PERA and the other statewide pension plans. T-1 HIGH FIVE YEAR BENEFIT BASE The adoption in 19*13 of the "high five year" benefit formula for PERA has provided very adequate pension benefits for career municipal employees. Further shortening of the averaging period would create windfalls for some PERA members and multiply opportunitie,:; for manipulation of service and salaries to maximize pension benefits without proportional contributions to