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Minnesota Legislature

Office of the Revisor of Statutes

Chapter 69

Section 69.051

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69.051 FINANCIAL REPORT, BOND, EXAMINATION.
    Subdivision 1. Financial report and audit. The board of each salaried firefighters relief
association, police relief association, and volunteer firefighters relief association as defined in
section 424A.001, subdivision 4, with assets of at least $200,000 or liabilities of at least $200,000
in the prior year or in any previous year, according to the applicable actuarial valuation or
financial report if no valuation is required, shall:
(1) prepare a financial report covering the special and general funds of the relief association
for the preceding fiscal year on a form prescribed by the state auditor. The financial report must
contain financial statements and disclosures which present the true financial condition of the relief
association and the results of relief association operations in conformity with generally accepted
accounting principles and in compliance with the regulatory, financing and funding provisions
of this chapter and any other applicable laws. The financial report must be countersigned by the
municipal clerk or clerk-treasurer of the municipality in which the relief association is located
if the relief association is a firefighters relief association which is directly associated with a
municipal fire department or is a police relief association, or countersigned by the secretary of the
independent nonprofit firefighting corporation and by the municipal clerk or clerk-treasurer of the
largest municipality in population which contracts with the independent nonprofit firefighting
corporation if the volunteer firefighter relief association is a subsidiary of an independent
nonprofit firefighting corporation;
(2) file the financial report in its office for public inspection and present it to the city council
after the close of the fiscal year. One copy of the financial report must be furnished to the state
auditor after the close of the fiscal year; and
(3) submit to the state auditor audited financial statements which have been attested to by a
certified public accountant, public accountant, or the state auditor within 180 days after the close of
the fiscal year. The state auditor may accept this report in lieu of the report required in clause (2).
    Subd. 1a. Financial statement. (a) The board of each volunteer firefighters relief association,
as defined in section 424A.001, subdivision 4, that is not required to file a financial report
and audit under subdivision 1 must prepare a detailed statement of the financial affairs for the
preceding fiscal year of the relief association's special and general funds in the style and form
prescribed by the state auditor. The detailed statement must show the sources and amounts of
all money received; all disbursements, accounts payable and accounts receivable; the amount of
money remaining in the treasury; total assets including a listing of all investments; the accrued
liabilities; and all items necessary to show accurately the revenues and expenditures and financial
position of the relief association.
(b) The detailed financial statement required under paragraph (a) must be certified by
an independent public accountant or auditor or by the auditor or accountant who regularly
examines or audits the financial transactions of the municipality. In addition to certifying the
financial condition of the special and general funds of the relief association, the accountant or
auditor conducting the examination shall give an opinion as to the condition of the special and
general funds of the relief association, and shall comment upon any exceptions to the report. The
independent accountant or auditor must have at least five years of public accounting, auditing, or
similar experience, and must not be an active, inactive, or retired member of the relief association
or the fire or police department.
(c) The detailed statement required under paragraph (a) must be countersigned by the
municipal clerk or clerk-treasurer of the municipality, or, where applicable, by the secretary of the
independent nonprofit firefighting corporation and by the municipal clerk or clerk-treasurer of the
largest municipality in population which contracts with the independent nonprofit firefighting
corporation if the relief association is a subsidiary of an independent nonprofit firefighting
corporation.
(d) The volunteer firefighters' relief association board must file the detailed statement
required under paragraph (a) in the relief association office for public inspection and present it to
the city council within 45 days after the close of the fiscal year, and must submit a copy of the
detailed statement to the state auditor within 90 days of the close of the fiscal year.
    Subd. 1b. Qualification. The state auditor may, upon a demonstration by a relief association
of hardship or inability to conform, extend the deadline for reports under subdivisions 1 or 1a, but
not beyond November 30th following the due date. If the reports are not received by November
30th, the municipality or relief association will forfeit its current year state aid, and until the state
auditor receives the required information, the relief or municipality will be ineligible to receive
any future state aid. A municipality or police or firefighters' relief association shall not qualify
initially to receive, or be entitled subsequently to retain, state aid pursuant to this chapter if the
financial reporting requirement or the applicable requirements of this chapter or any other statute
or special law have not been complied with or are not fulfilled.
    Subd. 1c. Notification of secretary of state. The state auditor annually shall provide the
secretary of state with a list of the names of the volunteer firefighter relief associations that
comply with the requirements of subdivision 1 or 1a. The information provided must also
include, for each volunteer firefighter relief association, the office address and the name of the
person functioning as president.
    Subd. 2. Treasurers bond. No treasurer of a relief association governed by section 69.77
shall enter upon duties without having given the association a bond in a reasonable amount
acceptable to the municipality for the faithful discharge of duties according to law. No treasurer
of a relief association governed by sections 69.771 to 69.776 shall enter upon the duties of the
office until the treasurer has given the association a good and sufficient bond in an amount equal
to at least ten percent of the assets of the relief association; however, the amount of the bond
need not exceed $500,000.
    Subd. 3. Report by certain municipalities. Each municipality which has an organized fire
department but which does not have a firefighters' relief association shall annually prepare a
detailed financial report of the receipts and disbursements by the municipality for fire protection
service during the preceding calendar year, on a form prescribed by the state auditor. The financial
report shall contain any information which the state auditor deems necessary to disclose the
sources of receipts and the purpose of disbursements for fire protection service. The financial
report shall be signed by the municipal clerk or clerk-treasurer of the municipality. The financial
report shall be filed by the municipal clerk or clerk-treasurer with the state auditor on or before
July 1 annually. The state auditor shall forward one copy to the county auditor of the county
wherein the municipality is located. The municipality shall not qualify initially to receive, or
be entitled subsequently to retain, state aid pursuant to this chapter if the financial reporting
requirement or the applicable requirements of this chapter or any other statute or special law have
not been complied with or are not fulfilled.
    Subd. 4. Notification by commissioner and state auditor. The state auditor in performing
an audit or examination shall notify the Legislative Commission on Pensions and Retirement if
the audit or examination reveals malfeasance, misfeasance, or nonfeasance in office.
The commissioner shall notify the Legislative Commission on Pensions and Retirement if
the state auditor has not filed the required financial compliance reports by July 1.
History: 1969 c 1001 s 5; 1971 c 695 s 6; Ex1971 c 6 s 9; 1973 c 492 s 7; 1977 c 429 s 63;
1981 c 224 s 22,274; 1982 c 460 s 3,4; 1983 c 113 s 2,3; 1986 c 359 s 9; 1986 c 444; 1993 c 86 s
1; 1997 c 241 art 10 s 1-3; 1Sp2005 c 8 art 9 s 1,2