Finding 1225231 (2025-004)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-07-30
Audit: 408258
Organization: CITY OF RUSH CITY (MN)
Auditor: CARLSONSV LLP

AI Summary

  • Core Issue: The City did not follow the law by failing to solicit sealed bids for a contract over $175,000.
  • Impacted Requirements: This violates Minn. Stat. §471.345, which mandates sealed bids for large contracts.
  • Recommended Follow-Up: Ensure future contracts over $175,000 comply with sealed bid requirements to avoid legal issues.

Finding Text

Finding 2025-004. Failure to Let Sealed Bid Minn. Stat. §471.345, the Uniform Municipal Contracting Law, was established to provide dollar limits for all municipalities upon contracts which shall or may be entered into on the basis of competitive bids, quotations, or purchase or sale in the open market. For contracts over $175,000 - sealed bids, solicited by public notice and subject to the particular requirements of the governmental subdivision are required. During 2025, the City entered into a contract exceeding $175,000 and failed to solicit sealed bids by public notice as required by the Uniform Municipal Contracting Law.

Corrective Action Plan

Disagreement with Audit Finding: None Actions Planned in Response to Finding: The City will ensure all future contracts exceeding the established limits will be solicited by public notice, unless an exception applies to the particular contract. Official Responsible for Ensuring CAP: Amy Mell, City Administrator Planned Completion Date for CAP: December 31, 2026 Plan to Monitor Completion of CAP: City Council

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1225228 2025-001
    Material Weakness Repeat
  • 1225229 2025-002
    Material Weakness Repeat
  • 1225230 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $1.67M