Entities created through joint powers agreements must maintain strict accountability of all funds and must maintain reports of all receipts and disbursements. To the extent practicable, the same rules that apply to the individual entities must be applied to any contracts, purchases, or disbursement of funds made under the agreement.
The agreement needs to describe how any property acquired under the joint exercise of powers will be distributed after the purpose of the agreement has been completed. Once the purpose of the agreement has been completed, any surplus funds must be returned to the contracting parties in proportion to their contributions.
The primary statute on the joint exercise of governmental powers is Minn. Stat. § 471.59.
Date this Avoiding Pitfall was most recently published: 02/27/2015