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Golden Valley, City of - 2024 Final Issued Legal Compliance Report - Locked 400 Robert Street North, Suite 1600, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com MINNESOTA LEGAL COMPLIANCE REPORT To the Honorable Mayor and Members of the City Council City of Golden Valley, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Golden Valley, Minnesota as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the City of Golden Valley, Minnesota’s basic financial statements, and have issued our report thereon dated July 24, 2025. In connection with our audit, we noted that the City of Golden Valley, Minnesota failed to comply with provisions of the claims and disbursements section of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statute § 6.65, insofar as they relate to accounting matters as described in the schedule of findings and responses as item 2024- 002. Also, in connection with our audit, nothing came to our attention that caused us to believe that the City of Golden Valley, Minnesota failed to comply with the provisions of the contracting– bid laws, depositories of public funds and public investments, conflicts of interest, public indebtedness, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City of Golden Valley, Minnesota’s noncompliance with the above referenced provisions, insofar as they relate to accounting matters. Government Auditing Standards requires the auditor to perform limited procedures on the City of Golden Valley, Minnesota’s response to the findings identified in our audit and described in the accompanying schedule of findings and responses. The City of Golden Valley, Minnesota’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LLC St. Paul, Minnesota July 24, 2025 CITY OF GOLDEN VALLEY, MINNESOTA SCHEDULE OF FINDINGS AND RESPONSES For The Year Ended December 31, 2024 2024-002 Prompt Payment of Bills Criteria: Minnesota Statute 471.425 requires that a municipality must pay each vendor obligation according to the terms of the contract or, if no contract terms apply, within the standard payment period unless the municipality in good faith disputes the obligation. For municipalities who have governing boards which have regularly scheduled meetings at least once a month, the standard payment period is defined as within 35 days of the date of receipt. Condition: During our audit testing of contracts payable, we discovered a contractor’s invoice for work completed in 2023 and due October 2023 that was not paid until early 2025. Cause: The invoice was not provided to the finance department for payment. Effect: Although no penalties and interest were charged to the City in this circumstance, there is a risk of incurring finance charges if invoices are not paid on time. Additionally, the $110,251 expenditure relating to this invoice was not properly recorded in 2023. As described in Note 16 to the financial statements, equity was restated due to this oversight. Recommendation: We recommend the City implement procedures to ensure all invoices are provided to the finance department so that payment can be made timely. Management Response: There is no disagreement with the audit finding. City staff will work to ensure timely and prompt payment of invoices within the legally required time limit.