Minnesota Legal Compliance Audit Guide for Local Government - Section 1

LEGAL COMPLIANCE MANUALDEPOSITORIES OF PUBLIC FUNDSANDPUBLIC INVESTMENTSIntroductionA government entity that receives and disburses funds may deposit the funds only infinancial institutions designated by its governing body. The governing body mayauthorize its treasurer or chief financial officer to make such designations. Thegovernment entity may deposit funds in amounts that are federally insured or, if itdeposits more than this amount, it must either have the depository furnish a bond orassign collateral to protect the excess deposit."Government entity" for the purpose of this section means:- a county;*- a city;*- a town;- a school district;- a hospital district;- a public authority;- a public corporation;- a public commission;- a special district; - a political subdivision; or- an American Indian tribal government entity located within a reservation.Minn. Stat. § 118A.01, subd. 2."Public funds" for the purpose of this section means all general, special, permanent,trust, or other funds, regardless of source or purpose, held or administered by agovernment entity, unless otherwise restricted. Minn. Stat. § 118A.01, subd. 4.If the audited government al ent ity is one of those list ed and it has the power to receiveand disburse public funds, then complete this section to determine if the governmententity has properly invested its funds or deposited its funds in a properly designateddepository with appropriate collateral or bond. In ...