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CITY OF ORONO <br />SCHEDULE OF FINDINGS AND RECOMMENDATIONS <br />YEAR ENDED DECEMBER 31, 2015 <br /> <br /> <br />2015-001 LATE PAYMENT OF BILLS <br /> <br />Criteria: Minnesota Statutes §471.425 requires that bills be paid within terms of the contract <br />or, if there are no terms stated, within 35 days. <br /> <br />Condition: During our disbursement testing, we noted three invoices out of a total of twenty- <br />five tested which the City did not pay within the required 35-day time period. <br /> <br />Cause: The City did not carefully review the invoice dates to ensure they were paid timely. <br /> <br />Effect: The City is not in compliance with the Minnesota Statute requiring the prompt <br />payment of bills. <br /> <br />Recommendation: We recommend that the City ensures its disbursement controls include <br />procedures for reviewing the terms of invoices and ensuring all invoices are paid either <br />within the contract terms or 35 days, whichever is applicable. <br /> <br />Management Response: The City will make sure to carefully review all invoices to ensure <br />they are paid within the time periods required by state statute. <br />