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Home My WebLink About5.a. Presentation and Acceptance of 1996 Audited Financial Statements , CITY OF ROSEMOUNT '� EXEGl1TNE SUMMAIRY FOR ACTION CITY COUNCIL MEETING DATE: June 17, 1997 AGENDA SECTION: AGENDA ITEM: Presentation and Acceptance of 1996 pepartment Heads Report Audited Financial Statements AGENDA N�cA� �� PREPARED BY: Jeff May, Finance Director �� pTTACHMENTS: Resolution & 1996 Audited Financial APPROVED BY: Statements ave Coliins of Boeckermann, Heinen & Mayer W�� atements. Alesthe partnegin AI Heinen and/or D Wi�� give a June 17th, to review the City of Rosemount's��w9� heads p the work for our audit. They ��able charge of our audit and Dave is the supe feel may be worthy of your attention and also be avai brief presentation, highiighting items they tions that you may have. The motion you have before you formally accepts, by to answer any ques resolution, the financial statements as presented. RECOMMENDED ACTION: CCEPTING THE 1996 AUDITED FINANCIAL STATEMENTS. Motion to adopt A RESOLUTION A COUNCIL ACTION: t CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 1997 - A RESOLUTION ACCEPTING THE 1996 AUDITED FINANCIAL STATEMENTS WHEREAS, the City of Rosemount has been presented its 1996 audited financial statements, prepared by the audit firm of Boeckermann, Heinen & Mayer. NOW, THEREFORE, BE IT RESOLVED, that the Gity Council of the City of Rosemount, accepts its 1996 audited financial statements, prepared by the audit firm of Boeckermann, Heinen & Mayer. ADOPTED this 17th day of June, 1997. Cathy Busho, Mayor ATTEST: Susan M. Walsh, City Clerk Motion by: Seconded by: Voted in favor: Voted Against: _ .A. R, P EN � tANTS HE1N � � ouN N , � A E�� puBL BO F � E � C E R T � lune 17, 1997 To the City Council��esota the"CitY")for the of Rosemount, Ntinnesota( � 22� 1997• City of Rosemount, the fir►a�►�lal Sta'tements oVehl S ed our report thereon��a�at on related to our We have audlted 1996, a�d ha ou�th the follovvmS yeaz enaed December 31 u�e that we pro�de y Professional stand�ds req audit. Standa�ds nerall Acce ted Audit�— as described bY under Ge o� responsibifitY� Our Res onsibili 1996, but not absolute, ted December 31, r�,sonable, Because of our eng�em ot 1�r� perform our audit to obtain Ss�te eenXa�nation of all As stated� a�.ds, �S t p a detaaled ssional sta� ancial statements a�e freno�f�o� � � fraud �d profe �clud g d because v�'e dil�ti s, or illegal acts, assuran�e ab f�as n�le assuran�e an t he c o n c e p t� ris k t h a t m a t e ri a 1 errors, �e� transactions, there is a may �St a"d not be detected by"S' t��e o f�e City• Such considerations defalcations, rovide any assu�Ce udit, our audit procedures and not to p ur a we considered the intern��ontro s �part of o of determi�nS were solely for the purPos� concerning Such internal COntrol strucrure. Polic,..Y_ riate accounting policies. � Si 'ficant Accountin d use of approP a ement ��Ut �e onsibility for selection � ad��t �counting Policies M�a�ement has the resp S of our engagement lerter, �'''e �e si licat�on• No new accounting accordan�e �th the t� olicies and their aPp �cial statemen�� 1996. We appropriateness of accounting p the Notes to the � not chan$ed dur�g �e described in olicies w� ��'t �'d used by the CitY d the application of e�s a�g �e ye� that were b ot�� you, or policies were adopted an the C1tY re uued stand�ds� We are 9 under professionaa •tative gwd�'�°r consensus. no transac�1Ons entered into Y noted w�� unusual, and of actions for which there was a lack of aut on trans MINNFJAt'�LIS,MN Nurwest Financial Cen�� Bloom}in9 n MN 55431th,S 3�2200 (612)84�"2500525 Fvc(6l2)�" To the City Council City of Rosemount, Minnesota June 17, 1997 Page two Accountine Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from management's current judgments. Management's estimate of the allowance for doubtful accounts receivable is based on a review of outstanding accounts receivable at December 31, 1996. This review included an aging analysis as well as payments received during 1996. We evaluated the key factors and assumptions used to develop the allowance for doubtful accounts in deternuning that it is reasonable in relation to the financial statements taken as a whole. Si�nificant Audit Adjustments For purposes of this letter, professional standaxds define a significant audit adjustment as a proposed correction of the financial statements that, in our judgment, may not have been detected except through our auditing procedures. These adjustments may include those proposed by us but not recorded by the City that could potentially cause future financial statements to be materially misstated, even though we have concluded that such adjustments are not material to the current financial statements. We proposed no audit adjustments that could, in our judgment, either individually or in the aggregate, have a significant effect on the City's financial reporting process. Disagreements with Mana eg ment For purposes of this letter, professional standards define a disa�reement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. To the City Council City of Rosemount, Minnesota June 1'7, 1997 Page three Consultarion with Other Independent Accountants To the best of our knowledge, management has not consulted with or obtained opinions from other independent accountants during the past year that are subject to the requirements of Statement on Auditing Standards No. 50, "Reports on the Application of Accounting Principles." Issues Discussed Prior to Retention of Indenendent Auditors We generally discuss a vaxiety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Dif�culties Encountered in Perfornung the Audit We did not encounter any difficulties in dealing with management while perfornung our audit. This information is intended solely for the use of the City Council, and management of the City of Rosemount, Minnesota, and should not be used for any other purpose. Very truly yours, �"'^'' �� `r- ��► ��' ,, BOECKER.MANN, HEINEN&MAYER,P.A. cl. mount t of RoSe y s. Ad o ted Gen eral Fun d Bal ance v p . Bud et Exendlture g p $5,000,000 $4,500,000 ' $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1 ,000,000 $500,000 $0 1995 1996 1992 1993 1994 —�- Generai Fund Balance _...- p ropriated Expenditures pp • ount c lt o f Ro s em y T ax L ev v s . Assess ed V alue Y $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 1996 1992 1993 1994 1995 -♦- Total Tax Levy -�- Total Assesed Vai ue ' o s emount �lt of R y hers nd Ot est Tax a ers a 5 Lar p Y g ■ Great Northern Oil Company ■ Koch Refining Company �� Northern States Power Company ■ CF Industries, Inc. ■ USPCI, Inc. ■ AII Others . ' s emount c lt of Ro Y • Values E stlmate d l�/I arket $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 �� 1996 1992 1993 1994 1995 -�- Real Property -�- Personal Property • • cltof Ro s emount y Inter ov ernme ntal Revenue vs . g Pro e rt Taxes p Y $2,500,000 $2,0OO,OQO $1 ,500,000 $1 ,000,000 $500,000 �� 1996 �992 1993 1994 1995 --�-- Intergovernmentai Revenue --- Property Taxes , clt' emount of Ros y Net B ond ed De bt $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1 ,500,000 $1 ,000,000 $500,000 $4 1992 1993 1994 1995 1996 . ' , Ct• 1 o f Ro s emount y Grossn ed Debt Bo d $25,000,000 $24,000,000 $23,000,000 $22,000,000 $21 ,000,000 $20,000,000 $19,000,000 $18,000,000 1992 1993 1994 1995 1996