Legal Compliance Guide Session Two 2:00 PM

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Legal Compliance Guide Session Two 2:00 PM

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1. Legal Compliance Guide Session Two 2:00 PM Why should you be concerned with Legal Compliance? We have done our record keeping the same way since who knows when and it works just fine? For the most part, you most likely are doing everything correct but since you are responsible for the finances of the entire Township, it is imperative to do so legally. So think of it this way, “Compliance, it is Legal”!Why should you be concerned with Legal Compliance? We have done our record keeping the same way since who knows when and it works just fine? For the most part, you most likely are doing everything correct but since you are responsible for the finances of the entire Township, it is imperative to do so legally. So think of it this way, “Compliance, it is Legal”!

2. Minnesota Legal Compliance Audit Guide for Political Subdivisions and much more What you should have known before you did what you did? Yes, there is a guide to help make sure you follow the law. Along with the Statutes that direct your responsibilities, the Audit Guide gives you a checklist of how you can follow the law. It is simple to read and is broken down into different areas of concern and clearly identifies specific requirements. You will most likely continue doing your bookkeeping just like you do now, only tweak the system a bit to back up your entries.Yes, there is a guide to help make sure you follow the law. Along with the Statutes that direct your responsibilities, the Audit Guide gives you a checklist of how you can follow the law. It is simple to read and is broken down into different areas of concern and clearly identifies specific requirements. You will most likely continue doing your bookkeeping just like you do now, only tweak the system a bit to back up your entries.

3. Guidelines for preparation of minutes Records retention and how to dispose of old records Additional forms of storage / access Compliance Audit Guide, cont. This document is a checklist to assist the auditor of government units in the verification of statutory compliance. If you are audited this is what they will look for! You are either answering YES or NO and that will determine if you are compliant. These are minimum compliance guidelines. It is not intended to be a complete compilation of all laws affecting small governments. It will show model reports that would be completed by those doing the audit that must be issued as part of the audit. Minutes are defined by content or official actions taken including subject matter of the motion, the persons making and seconding, list of the votes. They should also cover the character of resolutions or ordinances offered, including a brief description of their subject matter, and whether defeated or adopted. Minutes identify the actions but not the discussions of members and others. The minutes must include the information as required in Minn. Stat. ch 13D [Minnesota Open Meeting Law], unless such information is recorded elsewhere. Minn. Stat. § 13D.01, subd.4 The journal must be open to the public during all normal business hours where records of the public body are kept. Votes by each member of the governing body on “an action” must be specifically recorded except for votes on “payments of judgments, claims, and amounts fixed by statute.” There are times when the record of minutes should include more than just actions – when developing findings of fact to demonstrate purpose for actions. Records Retention: Use the record detention guide “find it easy, find it fast”, found on the Township website Resource Center the Guide can tell you how long each type of document needs to be kept. Keep in mind that it is important to follow these minimum guidelines because there could be documents needed to perform an Audit. Remember, your Township must formalize acceptance of the Records Retention Program before any records can be destroyed. There are additional forms of storage for your records. The Association doesn’t indorse any specific company but there are a few that advertise in the township newspaper. They will be able to make backup copies of your Township records on the most current technology and you will be able to access it from current technology as well. You will need to make sure that the information can be upgraded to the most current technology as time goes on so that you can continually be allowed to access the information with the technology of the time. Also, these are additional forms of storage, they do not replace the retention of actual documents.This document is a checklist to assist the auditor of government units in the verification of statutory compliance. If you are audited this is what they will look for! You are either answering YES or NO and that will determine if you are compliant. These are minimum compliance guidelines. It is not intended to be a complete compilation of all laws affecting small governments. It will show model reports that would be completed by those doing the audit that must be issued as part of the audit. Minutes are defined by content or official actions taken including subject matter of the motion, the persons making and seconding, list of the votes. They should also cover the character of resolutions or ordinances offered, including a brief description of their subject matter, and whether defeated or adopted. Minutes identify the actions but not the discussions of members and others. The minutes must include the information as required in Minn. Stat. ch 13D [Minnesota Open Meeting Law], unless such information is recorded elsewhere. Minn. Stat. § 13D.01, subd.4 The journal must be open to the public during all normal business hours where records of the public body are kept. Votes by each member of the governing body on “an action” must be specifically recorded except for votes on “payments of judgments, claims, and amounts fixed by statute.” There are times when the record of minutes should include more than just actions – when developing findings of fact to demonstrate purpose for actions. Records Retention: Use the record detention guide “find it easy, find it fast”, found on the Township website Resource Center the Guide can tell you how long each type of document needs to be kept. Keep in mind that it is important to follow these minimum guidelines because there could be documents needed to perform an Audit. Remember, your Township must formalize acceptance of the Records Retention Program before any records can be destroyed. There are additional forms of storage for your records. The Association doesn’t indorse any specific company but there are a few that advertise in the township newspaper. They will be able to make backup copies of your Township records on the most current technology and you will be able to access it from current technology as well. You will need to make sure that the information can be upgraded to the most current technology as time goes on so that you can continually be allowed to access the information with the technology of the time. Also, these are additional forms of storage, they do not replace the retention of actual documents.

4. What’s in the Compliance Audit for Townships? Why should I have this document? It’s a checklist Accounting policies and procedures Compliance Audit Guide, cont. What? Minimum requirements of: Minutes, Retention of Records, Accounting and reporting. Prepared to help those auditing political subdivisions. It covers specific directions for putting information in the minutes of meetings, as well as references to statutes for specific situations that Townships incur. Why? Reference your end of the year audits. As the Clerk, it is your responsibility to prepare accurate claims. For the Treasurer, correctly detailed receipts, deposited promptly. Keeping a copy of the guide at hand will help to make sure you can follow the Audit track before hand so that you don’t have to go backwards to amend something you forgot about or didn’t know about. It can be used as a quick reference to go down through and use it as a checklist just to make sure you have covered all the requirements to ensure the Auditors will be able to follow the record keeping path. It will help with consistency in the way transactions are recorded and that the paper trail is in order. What? Minimum requirements of: Minutes, Retention of Records, Accounting and reporting. Prepared to help those auditing political subdivisions. It covers specific directions for putting information in the minutes of meetings, as well as references to statutes for specific situations that Townships incur. Why? Reference your end of the year audits. As the Clerk, it is your responsibility to prepare accurate claims. For the Treasurer, correctly detailed receipts, deposited promptly. Keeping a copy of the guide at hand will help to make sure you can follow the Audit track before hand so that you don’t have to go backwards to amend something you forgot about or didn’t know about. It can be used as a quick reference to go down through and use it as a checklist just to make sure you have covered all the requirements to ensure the Auditors will be able to follow the record keeping path. It will help with consistency in the way transactions are recorded and that the paper trail is in order.

5. Depositories of Public Funds and Public Investments Conflicts of Interest Public Indebtedness Contracting – Bid laws Claims and Disbursements The guide and it’s sections These are the sections of the audit guide pertaining to Townships that we cover in more detail.These are the sections of the audit guide pertaining to Townships that we cover in more detail.

6. Examples of Auditor’s Reports on Compliance Relief Associations Political Subdivision Miscellaneous Provisions The guide and it’s sections, cont. More sections that we will be discussing in the presentation.More sections that we will be discussing in the presentation.

7. Receipts Deposited promptly Claims Declaration of Clerk Disbursements Reconcile the bank statement Accounting Procedures Receipts: Hand written pre-numbered receipt from the Treasurer given to the Clerk for all money deposited promptly, Treasurer, get these receipts to the Clerk as soon as possible, so that the Clerk can make the needed entries in their bookkeeping in sufficient time before the meeting. (If there is a check stub attached to a check given to the Township, attach that stub to the deposit ticket as proof of receipt. Also attach any documentation of automatic deposits). Claims: Invoices need to be audited and claims prepared before the meeting. Make sure the Clerk signs the declaration with the check number and the date paid. (check payment record attached to record). Disbursements: They need to be recorded accurately and as soon as possible after the board meeting. Not just for the Clerks but also for the Treasurer. Remember that both the Clerk and the Treasurer need to reconcile the Bank Statement every month, not several months at a time. If you have an error in your recording of Disbursements, it will show up when you reconcile with the bank. If you let reconciling go for a number of months, it will just create more problems with balancing later on, and compound the problem for every month you wait.Receipts: Hand written pre-numbered receipt from the Treasurer given to the Clerk for all money deposited promptly, Treasurer, get these receipts to the Clerk as soon as possible, so that the Clerk can make the needed entries in their bookkeeping in sufficient time before the meeting. (If there is a check stub attached to a check given to the Township, attach that stub to the deposit ticket as proof of receipt. Also attach any documentation of automatic deposits). Claims: Invoices need to be audited and claims prepared before the meeting. Make sure the Clerk signs the declaration with the check number and the date paid. (check payment record attached to record). Disbursements: They need to be recorded accurately and as soon as possible after the board meeting. Not just for the Clerks but also for the Treasurer. Remember that both the Clerk and the Treasurer need to reconcile the Bank Statement every month, not several months at a time. If you have an error in your recording of Disbursements, it will show up when you reconcile with the bank. If you let reconciling go for a number of months, it will just create more problems with balancing later on, and compound the problem for every month you wait.

8. Declaration Language Prompt Payment of Local Government Bills Electronic or Wire Transfer Automatic or “On Line Payments” Endorsement of Claims Credit Card and Charge Accounts Claims and Disbursements Declaration Language on back of the check: Minnesota Statute Section 471.38 requires all claimants requesting payment from the town to sign a declaration “to the effect that such account, claim, or demand is just and correct and that no part of it has been paid”. No one claiming payment from the town can receive payment until this signed declaration is made. Minnesota Statute Section 471.391 allows your township to have the claimant make the declaration when he or she endorses the town’s check. The form provided in this statute states; “I declare under the penalties of law that this account, claim or demand is just and correct and that no part of it has been paid. Also information on front of check stating “this instrument when signed by the treasurer…”. This appears to be the language from Minn. Stat. Section 367.18 which states; “Each order shall be drawn so that when signed by the treasurer in an appropriate place, it becomes a check on the town depository”. As far as I know this language, itself, would not be required on a check. However, as an internal control it is an advantage for towns checks to have this statement. It puts all takers of the check on notice that more than two signatures are required; in fact the treasurer’s signature is required and with out it the “order” does not become a check i.e.; a negotiable instrument. Prompt bill pay: 471.425 subd.2 (MN Statute 182.101 states that all wages earned by an employee must be paid every 31 days, regardless if the employee requests payment at longer intervals. All other bills are 45 days unless there is a dispute) Endorsement by Clerk-Ex-Officio Notary declaring that the bill is paid. The Township can have credit cards and charge accounts. The Supervisors must designate who can use those accounts. You have to submit original receipts. Be very careful. The person using the card cannot audit that account. If the clerk and treasurer can use the card or charge account then a supervisor that is not on the card or charge account would audit those bills. Keep it limited to only a few people on the board. Chair signs the check first, clerk is verifying the chair and the Treasurers signature makes it legal tender.Declaration Language on back of the check: Minnesota Statute Section 471.38 requires all claimants requesting payment from the town to sign a declaration “to the effect that such account, claim, or demand is just and correct and that no part of it has been paid”. No one claiming payment from the town can receive payment until this signed declaration is made. Minnesota Statute Section 471.391 allows your township to have the claimant make the declaration when he or she endorses the town’s check. The form provided in this statute states; “I declare under the penalties of law that this account, claim or demand is just and correct and that no part of it has been paid. Also information on front of check stating “this instrument when signed by the treasurer…”. This appears to be the language from Minn. Stat. Section 367.18 which states; “Each order shall be drawn so that when signed by the treasurer in an appropriate place, it becomes a check on the town depository”. As far as I know this language, itself, would not be required on a check. However, as an internal control it is an advantage for towns checks to have this statement. It puts all takers of the check on notice that more than two signatures are required; in fact the treasurer’s signature is required and with out it the “order” does not become a check i.e.; a negotiable instrument. Prompt bill pay: 471.425 subd.2 (MN Statute 182.101 states that all wages earned by an employee must be paid every 31 days, regardless if the employee requests payment at longer intervals. All other bills are 45 days unless there is a dispute) Endorsement by Clerk-Ex-Officio Notary declaring that the bill is paid. The Township can have credit cards and charge accounts. The Supervisors must designate who can use those accounts. You have to submit original receipts. Be very careful. The person using the card cannot audit that account. If the clerk and treasurer can use the card or charge account then a supervisor that is not on the card or charge account would audit those bills. Keep it limited to only a few people on the board. Chair signs the check first, clerk is verifying the chair and the Treasurers signature makes it legal tender.

9. Who chooses depository Insured deposit balances Depositories / Investments By Statute, the governing body is responsible for making sure all funds are deposited into the Financial Institution of their choice. The governing board can give authority to the treasurer to deposit funds. Decisions of where to put funds and who is authorized to deposit funds should be in the minutes. Possible depositories: A savings association, A commercial bank, A trust company, A credit union or an industrial loan and thrift company. The Choice of Depository will be the Board of Supervisors. The Supervisors can Authorize the Treasurer to make the designation of the depository providing the depository meets the required collateral or bond. Reference the worksheet from the audit guide to help determine the correct amount of bond or collateral if the Township chooses to deposit balances that exceed the depository insurance if they belong to the FDIC of $250,000.00 By Statute, the governing body is responsible for making sure all funds are deposited into the Financial Institution of their choice. The governing board can give authority to the treasurer to deposit funds. Decisions of where to put funds and who is authorized to deposit funds should be in the minutes. Possible depositories: A savings association, A commercial bank, A trust company, A credit union or an industrial loan and thrift company. The Choice of Depository will be the Board of Supervisors. The Supervisors can Authorize the Treasurer to make the designation of the depository providing the depository meets the required collateral or bond. Reference the worksheet from the audit guide to help determine the correct amount of bond or collateral if the Township chooses to deposit balances that exceed the depository insurance if they belong to the FDIC of $250,000.00

10. Receipt all money into accounting record All rest is done in the investment / indebtedness record Depositories / Investments, cont. First of all, all money received by the Township has to be recorded in your accounting system either on paper or computer. After the receipts have been recorded, then they can be invested. Note of this Investment must be made in the minutes to start the paper trail for an Audit. Once the money has been invested, you need to continue to make the necessary and relevant transactions regarding the invested dollars. These transactions will occur either on paper for the specific investment or on computer in the Investment Module. You will need to keep track of any action concerning the particular investment such as added interest. Or if you withdraw money from the investment in order to use it to pay bills. When money is moved from Investments to the checkbook, note of the action needs to be made in the minutes.First of all, all money received by the Township has to be recorded in your accounting system either on paper or computer. After the receipts have been recorded, then they can be invested. Note of this Investment must be made in the minutes to start the paper trail for an Audit. Once the money has been invested, you need to continue to make the necessary and relevant transactions regarding the invested dollars. These transactions will occur either on paper for the specific investment or on computer in the Investment Module. You will need to keep track of any action concerning the particular investment such as added interest. Or if you withdraw money from the investment in order to use it to pay bills. When money is moved from Investments to the checkbook, note of the action needs to be made in the minutes.

11. Contract for Goods or Services Designation of Bank Designation of Official Newspaper Stockholder of Cooperative Association Contracts That Do Not Need To Bid Contract With Fire Department and Ambulances Conflicts of Interest Clarify if an officer is an employee of the bank or newspaper. Is the officer a shareholder or stockholder and not an officer or manager of the Coop Assn? If the Treasurer is given the authority to choose depository, newspaper or make investment decisions (if supervisor is an employee of the bank or their board it can be a conflict, any role at the bank where they can make a decision with a potential affect on the Township). Contracts that do not need to be bid: Did the Board adopt a resolution setting the essential facts and determine the contract price was as low or lower than the price at which the commodity or service could be obtained elsewhere? Fire and Ambulance Department: The concern is if the Officer is a member of the Fire Department or Ambulance. If it is a volunteer Department, is the contract for payment of compensation or payment of retirement benefits? For any of these instances, there are references to them in the Audit.Clarify if an officer is an employee of the bank or newspaper. Is the officer a shareholder or stockholder and not an officer or manager of the Coop Assn? If the Treasurer is given the authority to choose depository, newspaper or make investment decisions (if supervisor is an employee of the bank or their board it can be a conflict, any role at the bank where they can make a decision with a potential affect on the Township). Contracts that do not need to be bid: Did the Board adopt a resolution setting the essential facts and determine the contract price was as low or lower than the price at which the commodity or service could be obtained elsewhere? Fire and Ambulance Department: The concern is if the Officer is a member of the Fire Department or Ambulance. If it is a volunteer Department, is the contract for payment of compensation or payment of retirement benefits? For any of these instances, there are references to them in the Audit.

12. Contract for Construction Materials and Services Contract for Renting Space Contract or Franchise Agreement for Utilities Purchase of Merchandise from Governmental Agency Conflicts of Interest, cont. Snow removal: Officers versus other Contractors, was the contract done by sealed bid? Renting space: If the Township has space to rent, did the Officer pay the rate to commensurate with that paid by other members of the public? Contract or Franchise Agreement: Is the Officer an employee of the Utility? Did the Officer abstain from voting on any official action and did the member disclose the reason for the abstention in the official minutes of the meeting? EXAMPLE: Communications tower on supervisor’s property where the communications company is paying the supervisor for rent on property for the tower, and also the Township for fees. Purchase of Merchandise: Prohibited from selling property or materials owned by the political subdivision to its officers or employees. Employees may make purchase from political subdivisions if the following criteria are met. Was the property not needed for public purposes? Was the purchase made through sealed bids or public auction? Was the employee not directly involved with the sealed bid or auction process? Was the applicable Notice Law followed, and did the same require at least one week of published notice? If a supervisor is interested in purchasing this item then he/she needs to abstain from any decision regarding the sale.Snow removal: Officers versus other Contractors, was the contract done by sealed bid? Renting space: If the Township has space to rent, did the Officer pay the rate to commensurate with that paid by other members of the public? Contract or Franchise Agreement: Is the Officer an employee of the Utility? Did the Officer abstain from voting on any official action and did the member disclose the reason for the abstention in the official minutes of the meeting? EXAMPLE: Communications tower on supervisor’s property where the communications company is paying the supervisor for rent on property for the tower, and also the Township for fees. Purchase of Merchandise: Prohibited from selling property or materials owned by the political subdivision to its officers or employees. Employees may make purchase from political subdivisions if the following criteria are met. Was the property not needed for public purposes? Was the purchase made through sealed bids or public auction? Was the employee not directly involved with the sealed bid or auction process? Was the applicable Notice Law followed, and did the same require at least one week of published notice? If a supervisor is interested in purchasing this item then he/she needs to abstain from any decision regarding the sale.

13. Clerks / Treasurers role in conflicts of interest Resolution Affidavit of interest in Claim Conflicts of Interest, cont. Provide information in particular to supervisors. Resolution on books stating the supervisor had the only bid or lowest responsible bid. Affidavit attached to claim for every claim involving the situation. Not just once a year for recurring claims. Affidavit notarized Contracting Law document is on MAT Website and includes the sample resolution and copy of Affidavit of Interest in Claim. Provide information in particular to supervisors. Resolution on books stating the supervisor had the only bid or lowest responsible bid. Affidavit attached to claim for every claim involving the situation. Not just once a year for recurring claims. Affidavit notarized Contracting Law document is on MAT Website and includes the sample resolution and copy of Affidavit of Interest in Claim.

14. Long-Term Borrowing Short-Term Borrowing How do you get into debt? Emergency Borrowing Report Outstanding Bonds or Installment Contracts Public Indebtedness You can’t just go to the bank and borrow money. Borrowed money must first pay bills accumulated. Fiscal agent responsibilities – loans through IRRRB, USDA RHA or FEMA (difference in size of projects and requirements). Emergency: The board can contract with someone in an emergency & the posting, publishing, etc, is waived. Minn. Stat. § 471.70 – “On or before February 1st of each year, it shall be the duty of the principal accounting officer of each municipality to report to the auditor of each county in which such municipality is situate, the total amount of outstanding obligations, and the purpose for which issued as of December 31 of the preceding year.” Reference on borrowing: Kent Sulem’s Summer Short Course document is a great source of information. * make sure this is added to the websites information library.You can’t just go to the bank and borrow money. Borrowed money must first pay bills accumulated. Fiscal agent responsibilities – loans through IRRRB, USDA RHA or FEMA (difference in size of projects and requirements). Emergency: The board can contract with someone in an emergency & the posting, publishing, etc, is waived. Minn. Stat. § 471.70 – “On or before February 1st of each year, it shall be the duty of the principal accounting officer of each municipality to report to the auditor of each county in which such municipality is situate, the total amount of outstanding obligations, and the purpose for which issued as of December 31 of the preceding year.” Reference on borrowing: Kent Sulem’s Summer Short Course document is a great source of information. * make sure this is added to the websites information library.

15. $25,000 or Less $25,001 to $100,000 Over $100,000 Contracting – Bid Laws $25,000 open market or quotes $25,001 to $100,000 sealed bids or direct negotiations $100,000 sealed bids solicited by public notice Phased in as of – July 1, 2010, you don’t have to take the lowest bid but you can take the lowest responsible bid or The Best Value Procurement. As of July 1, 2010, language was added to add all other; townships, school districts, and political subdivisions in the state to be included in the law. Rental $60,000 or less – direct negotiation. $25,000 open market or quotes $25,001 to $100,000 sealed bids or direct negotiations $100,000 sealed bids solicited by public notice Phased in as of – July 1, 2010, you don’t have to take the lowest bid but you can take the lowest responsible bid or The Best Value Procurement. As of July 1, 2010, language was added to add all other; townships, school districts, and political subdivisions in the state to be included in the law. Rental $60,000 or less – direct negotiation.

16. Rental of Equipment State Cooperative Purchasing Venture Emergency Exceptions to bidding 375.21 / .22 Sale of Real Property Contracting, cont. Rental of Equipment is considered a contract, included in the contract, maintenance, breakdowns, time frame of rental. The contract needs to be mentioned in the minutes. When you rent equipment, take a picture of it before it leaves the lot. This could also be a conflict of interest if the equipment is owned by the Supervisor. State Cooperative Purchasing Venture: Done with the Administration of Minnesota Materials Management Division. Web address is www.mmd.admin.state.mn.us Emergency Exceptions reference the statute. Example of selling equipment State Statute 15.054 designates the process for selling real property of the Township. Minn. Stat. § 366.01 subd. 9 Real PropertyRental of Equipment is considered a contract, included in the contract, maintenance, breakdowns, time frame of rental. The contract needs to be mentioned in the minutes. When you rent equipment, take a picture of it before it leaves the lot. This could also be a conflict of interest if the equipment is owned by the Supervisor. State Cooperative Purchasing Venture: Done with the Administration of Minnesota Materials Management Division. Web address is www.mmd.admin.state.mn.us Emergency Exceptions reference the statute. Example of selling equipment State Statute 15.054 designates the process for selling real property of the Township. Minn. Stat. § 366.01 subd. 9 Real Property

17. Examples provided Listed on Auditor’s Website When Completed Auditor’s Reports on Compliance When you print this from State Auditors website there are examples within the document. When State Auditor is finished with an Audit, the results of the Audit are listed on the Auditors website.When you print this from State Auditors website there are examples within the document. When State Auditor is finished with an Audit, the results of the Audit are listed on the Auditors website.

18. What are they Who has them Relief Associations Townships that own Fire Departments and has a relief Association join them, and then contract with other local governments. E-Updates every week about relief associations. You need to be current with changes and really stay on top of this. This is a topic that is covered by our Attorneys.Townships that own Fire Departments and has a relief Association join them, and then contract with other local governments. E-Updates every week about relief associations. You need to be current with changes and really stay on top of this. This is a topic that is covered by our Attorneys.

19. Open Meeting Law Acceptance of Gifts Mileage reimbursement Donations Award/Recognition Political Subdivision Miscellaneous Provisions Open meeting law: Supervisors need to be careful with this. Do not discuss decisions of a Township nature when you are not at a meeting. Acceptance of Gifts. Is it something the Township can use, and is the Township statutorily able to accept it? Be careful when invited out to coffee or out to dinner by a citizen of the Township and start talking about an issue the resident is interested in. If the citizen buys the coffee or dinner, this could be considered a gift that is not statutorily acceptable. If you receive reimbursement for mileage that is more than the federal allowable amount of .51 any excess above the rate is considered income and must be reported as wages with withholdings. Rate usually changes at least annually. Donations: There are Donations that can be made by Townships that are statutorily driven. One example is a donation to an Agricultural Society. Before making a Donation, be certain there is an allowable statute for any donation the Township considers. Award/Recognition amount set by the citizens at the Annual meeting and recorded in the Annual Meeting Minutes.Open meeting law: Supervisors need to be careful with this. Do not discuss decisions of a Township nature when you are not at a meeting. Acceptance of Gifts. Is it something the Township can use, and is the Township statutorily able to accept it? Be careful when invited out to coffee or out to dinner by a citizen of the Township and start talking about an issue the resident is interested in. If the citizen buys the coffee or dinner, this could be considered a gift that is not statutorily acceptable. If you receive reimbursement for mileage that is more than the federal allowable amount of .51 any excess above the rate is considered income and must be reported as wages with withholdings. Rate usually changes at least annually. Donations: There are Donations that can be made by Townships that are statutorily driven. One example is a donation to an Agricultural Society. Before making a Donation, be certain there is an allowable statute for any donation the Township considers. Award/Recognition amount set by the citizens at the Annual meeting and recorded in the Annual Meeting Minutes.

20. THE END

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