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HomeMy WebLinkAbout3.b. Presentation of 1992 Audited Financial Statements GITY OF ROSEMOIINT E%ECUTIVB SIIMMARY FOR ACTION CITY COUNCIL MEETING DATE: June 15, 1993 AGENDA ITEM: Presentation of 1992 Audited AGENDA SECTION: Financial Statements Department Head Report PREPARED BY: AGENDA 1 1 EIYI # 3 � Jeff May, Finance Director ATTACHMENTB: 1992 Audited Financiai Statements A BY Ro er Scha us I g n , of Boeckermann, Heinen & Mayer, wi21 be here on Tuesday evening, June 15, 1993, to review the City of Rosemount's 1992 audited financial statements. Roger is the partner in charge of our audit. He will give a brief presentation, highlighting items he feels that may be worthy of your attention, and also be available to answer any questions that you may have. RECOMMENDED ACTION: None GOIINCIL ACTION: �► � ' CITY OF ROSEMOUNT REPORT TO MANAGEMENT December 31, 1992 t ° CITY OF ROSEMOUNT REPORT TO MANAGEMENT December 31, 1992 cor��rtrrs � ACCOUNTANTS' REPaRT 1 DISPOSITION OF PRIOR YEAR COMMENTS Code of Conduct Statements 2 Employment Law Update 2 Standard Mileage Rate 2 CURRENT YEAR COMMENTS ' Pledged Collateral 3 Permanent Improvement Fund 3 Financial Statement Preparation 3 Fixed Asset Listing 3 GRAPHIC ANALYSIS 4-10 �. F .. . . � . � . . � .. . . . . . . . . . .. . BOECK�14!1VIANNNEINEN� 1��lAYER C E R T 1 F 1 E D P U B L 1 L A C C O U N T A N T 5 To the Honorable Mayor and I Members of the City Council � City of Rosemount, Minnesota In planning and performing our audit of the general purpose financial statements of the City af Rosemount, Minnesota for the year ended December 31, 1992, we considered the City's intemal control structure to determine our auditing procedures for the purpose of expressing an opinion on the general purpase financial statements and not to provide assurance an the intemal control structure. However, during our audit we became aware of some matters th�t are opportunities for strengthening internal controls and operating efficiency. The memorandum that accompanies this letter summarizes our comments and suggestions regarding those matters and includes some graphic analysis. This letter does not affect our report dated March 23, 1993 on the general purpose financial statements of the City of Rosemount, Minnesota. We want to take this opportunity to express our sincere appreciation for the courtesies and cooperation extended to us by all of the City's personnel during the audit. We look forward to working with you in the future. Sincerely, � �� /�.�?�%�� �- ��''`''/ / BOECKERMANN, HETNEN & MAYER � Certified Public Accountants Minneapolis, Minnesota March 23, 1993 MINNEAPOLIS,MN Norwest Financia!Center 7900 Xences Avenue Soutk,Suite 2200 Bloomington,MN 55431-I113 (612)894-2500 Fvc(612)844-2525 � �.. ! . � . . � . . . .. . . . � . . � . . . . . . � . . . � . . DISPOSITION OF PRIOR YEAR CUMMENTS � � CITY OF ROSEMOUNT DISPOSITION OF PRIOR YEAR COMMENTS DECEMBER 31, 1992 CODE OF COP�1 DUCT , In our prior report we suggested that the City adopt a code of conduct policy. Such a policy could cover: - conflicts of interest - devotion of time and ability to the City - safeguarding information - acceptance of gifts and gratuities safeguarding of assets It is our understanding that the City is working on such a policy, and intends to adopt it sometime in 1993. We encourage you to adopt this policy as soon as possible. EMPLOYMENT LAW UPDATE In our prior report we commented an various changes made to employment laws during 1991. These changes included pre-employment screenings, overtime pay, Indeperident Contractor Status, and seacual harassment. We encourage you to review your current personnel policies to ensure yau are in campliance with these laws. STANDARD MILEAGE RATE The current IRS standard mileage rate has not changed from 1992 and is at 28 cents per mile. Any reimbursements in excess of this rate may include payroll reporting requirements. -2- . . .i� 3 . � . . . � � . . . . . . . . . . : � . . . CURRENT YEAR COMMENTS Lx . . � . . . �: � . � � � � . . . . CITY OF Rf)SEMOUNT CURRENT YEAR COMMENTS DECEMBER 31, 1992 PLEDGED COLLATERAL We noted during the current audit a deficiency in pledged collateral. This deficiency was caused by the timing of cash receipts at year-end. This deficiency was corrected in January of 1993. You are currently receiving monthly collateral reports from your banks, which is usually adequate control over collateral. You may want to have the banks eheck collateral on your accounts a couple of days priar to year-end to ensure adequate collateral has been pledged. PERMANENT IMPROVEMENT FUND During the current audit we noted that you are maintaining several capital project funds. I' Upon review of the activity in each fund, it appears that some may have little or no activity in them. We recommend reviewing your capital project funds to determine if some combining of funds is possible. IViaintaining too many funds can lead to control prc�blems and errors in financial reporting. We recommend any small projects be run through a permanent improvement revolving fund. This will likely save tune and money for the aceounting staff and other departments, and make the job of tracking construction jobs easier. FINANCIAL STATEMENT PREPARATI4N We have set your financial statement up on Lotus spreadsheets. Some interest on the part of your finance department regarding the internal preparatian of your financial statements has been expressed to us. We feel thisis an excellent idea, and would save the City money for the cost of preparing your financial statements. We will be speaking to your finance department over the summer, and would be pleased to assist in training for the use of the spreadsheets. FIXED ASSET LISTING Because the City does not have a complete and up-to-date listing of fixed assets owned, the audit opinion has been qualified far several years now. To eliminate the opinion qualification, a fixed asset recordkeeping system could be started. This system would include a listing of all property and eqnipment owned by the City and valued at it's original cost. It would also be of value for insurance purposes, capital budgeting, and is mandatory prior to applying to the Government Finance Officers Association (GFOA) for the Certificate for Excellence in Financial Reporting. -3- �IT� �F R�S El��I�UNT � REVENUE BR�AKD�WN 199� . M�scewvvevus tae�� INTEREST(0.99Is) CHARGES FOR SERV{CES j8.B96) UCENSE&PERM►TS(1Q896} TA)CES(55296) INTERGOV'T(15.896} FINES&FORFEtT(3.696) 1991 1 �92 BUDGET �un�ous ro•ex �ous rxo+t .rr�sr p.sxr rrraa�r n:sx� �sr��sts.a%> d�aEs wFt S�uaes(s�% uc�a r�u+Ts�.ox t�+sE a�rs Cr.s%� �rrc-�►vov�r�asx . . NTEROCN'Tp0.4711 T/1�8(57.0%) � . . � . � TA%E9(63.'1%) � . �s a�r p.tx� ,t;;^ w�s a Ror�err n.ax� _q_ �IZ'� �F RC��El�/IC�UNT � EXPENDITURE BREAKaC)WN 19�2 PARK&REC. (4 6.3°b) ENERAL GOVT(32996} �w�,�:� PUBUC WORKS{23.1°6) ��. PUBUC SAFETY(27.6°!0) 1991 1992 BUDGET RARK&REG.(17.596) PARK&AEC.(17.796) ENERAL GOV'T(30.496) ENEFiAL GOV'T(34.296) . . . . II � 1 . . . \ II�� �,: � . s PUBLICWORKS(1a596) PtJBUCWORKS{2a.�96} ���? UC SAFETY(28.896) UBUC SAFETY(2T.89� ��_ R EI��If�LT �T I�T'� � � � � � ENERAL FUND - REVEI� UE vs EXPEf� DITURE� $3.�0 0 $3.40 .. _..�.................... _.......�._.... .........._.............._..... ....._....._............ _... ......_. ..............._.._.. ........_ _.... ......_.. ............... .._.._. $3.20 ........_ _..w.... . ........� ...................._.�. ....._..............._.. ...._.._.__.......___ ._....._. ..._..._...._..........._.........__.. .........�........_.....::��....... ... .... ......�.. ......k. ,.., $3.f�U ......�....... ..................�. .------.. ..........._........._.._ _.......� ....�.�_ ........_......_....._ _..._...... _......._ ........ --. ......_ .--.._.. _..... .......�_ .....� � cn � ° $2.84 _._�. ............._....- .--------....................... .....-------......... ...-.----.. ..._...... ................ .. ........_... �....__._... ......... ... . . .----.---..�._._...�.. _.. . � .. `� $2.60 -...�.... ......... �......................--------- ...._ ......._. .---...---.._....._.._... ..._...�.. _-----�.. ..._................. .�..._.._ ......... ......_._.._........._........_ ................... ...�. c� ........ ...... �� $2.40 ........ . ...... ....... . ------.... .. ... . . -----.--.._................... .. ...._.... ........ .... .... ......... ......... . .__..... ...._.... .. . $2.20 ...�....�..._.. ...�......... ..._.---- ....._...:.............. ....... .................. ......._. _._._..._ ..�....----------_....:. ---.-�--. .. . . ......... ---..._.. . ...._..... $2.�0 1988 1989 1990 19�1 1992 Far the years ended De�emb�r 31 ; � . ....��_-. 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F R El�/I� TY� �� �I � GENERAL FUNQ TOTAL FUND BALANCE vs EXPENDITURES & TRANSFERS $3.50 .o $3.00 --.-.--......................_..... ....�.�_ ---..--- _........................_...._..........�.......---..�--.................�._...... .._....._...__..........._.._.. .�._......._..._....................._ ---...... ........ �........... .. ..._._ ... ........ .�... .� .-..... ......�.. ,.-�.. $2.50 -.......�.....� �_...................._...._........:_s __..__._ ..._...._.---------........................._..._._............._......_............__...._..._....._........._. ._.............................._.---.......__..._..�. .........�__....---.... � � ° $2.�a ----.� ..�-;' ..._......_----------._............._................................ ..._..--.--.......,._.. .............._..._..... ......... ...__.._ .....................--- -._ ..:.__... ..__._..�.......... ........... ........ . .---.. — 99.48% � � $1 .�0 ....�..�...... ..................�---... ._........ ..... . .. �:��%°-....._..---.--...-----...................._._....__.........---.----.._.............,.,._-.------�--...._......---....�.---...-. --.--.................._......__..._.............. 3G.40°f4 6.Q2% 3�.52% --� $1 .00 .__..----�--.-- �---.--�-----------------------------------------------------------------�-----.-�--.-------_...._.....-----..__.. . _...---------- ---.... -.........--..----.--.-------�----..�......._.._.-.---------------------..._........._.....-----.- $C�.54 1988 1989 199� 19�1 1992 For th� years ended December 31 : ....-.�o...-�-. Expend'rtures --�- Fund Balan�e -8- R Eli/I�LTl�T � �IT� � � �� UTILITY C�I�/IMISSI�N INCC�ME LC.�SS} � {BEFORE TRAi�SFERS} ���o � - �2oa ---. .........................._......_�...... ...._......... .-.---....------.---...................._........�..-.-..-.--......._......._........... ..._....._.... :� -....._._._.. ..._. $1 �p n�����: � _.....___ __.,........�. ...... _.._.._.... �� ..�.._........._.._�.................................._...-----....------...�...__ .._....._........�...... � $10� � fi � �� � � "'........ ...».......:.��....».....................' �,�• "' •.................""""""'.......,.....43:."'.................. .._.... :� ......."'. ......... � . � . � . � `� . . � ��� '•.+�' � � � . . � r,'+°-`r'�.'.' '� .` ... .. . .. � . `7' i, V . .. � . . . . ...� 'a. .��r r � �a �����v.�.{ .�r ..."v...}.r. +ih: r+'�+� . . i� � � . . . . . . . . . . � . �4� � � . .. . � . . . � . � . ��� . „'� ""'""' '......... """"'. ...... .......... ......... } ...... . ..............«.._..'"" ......... . .. •"'.. ......_.. . .. . . � .. � � � . .. . . . . . . ��i oo} ��1 �o} {�zaa} 1988 1989 199U 1991 1992 For the ears end�d Decemb�r 31 : Y _g_ � i � � • ' : i � � ! : ! . ► :,_,_,_,_,_,_, ,�,�,�,���,�,�. ►,.,.�.,.,.,., ►��,����������,# ������r������ ►������������� �► � ►���������.��� ►������������� ►�����������r� ►�*���l������� ������������s ►�i°��i�i�i�i� ������������� �,, �;� �������������� ♦�����♦ �� �������������� s ���+����������. � �������� ,_ . ♦�����♦ ������♦ ►������� �������� . ---� ►��•��� ♦�����♦ ►������� ♦�����♦ ������♦ ♦������ ►������� � ♦�����♦ �������� ►������� i�����♦ ♦������ ��i�i�i�i�i�i �i�i�i�i�i�i�i �i�i�i�s�i�i� i�i�i�i�i�i�i� �i�i�isi�i*i�i ►������+ ������♦ ♦����s♦ ♦������ ►������� ♦�����♦ ������s� ►�����♦� i����v� ♦�����♦ *���i�i�i�i�i �i�.�i�i�s�s�i �i�i�i�i�i�i� i�i�i�i�i�i�i� ►�s�i�is��i�i ►������� s�����♦ ♦�����♦ ♦�����{ ►�i������ ♦�����♦ �������� ►������� ������♦ ♦������ ►������� ���e��♦ ♦�����♦ ♦������ ►������� � ������������� ����o��������e ►������������,� s������������� �������e����e � � +��i�i�i+��i� i•i�i�i�i+��i� ►��i+��i�i�i�i �i�i�i�i�i�i�i ►�i's�i�i�i�i� ♦�����♦ �s������ ►�����o� i�����♦ ♦�����♦ ►.s����� ������♦ ♦������ ♦������ ►������� ♦�����♦ �������� ►������+ i������ ♦������, ►������� ������♦ ♦*����♦ ♦������ ►���e��� ♦�����♦ �������� ►������• 's�����♦ e�.���♦ ►������� ������♦ ♦������ ♦������ ►������� ♦�����♦ �������� ►������� i�����♦ ♦�����♦ �+i�i�i�i�i�i �i�i�i�i�i�i�i ►�i�i�i�i�i�i� ��i�i�i�i�i�i� �i�i�i�i�i�i�i► �i�i�i�i�i�i� e�i�i�i�i�i�i� ►i�i�i�i�i�i�i �i�i�i�i�i�i�i i�i�i�i�i�i�i� �i�i�'i�i�i�i� i�i�i�i�i�i�i� ►��i*i�i�i�i�i �i�i�i�i�i�♦�i ►�i�i♦i�i�i�i� ♦�����♦ �������� ►��.���� i������ ♦�����♦ � ������������� �������������� �������������� ���s���������� ►����������+�� ► ►������. ♦e����♦ ♦�����♦ ♦������ ►������� �i�i�i�i�i�i� i�i�i�i�i�i�i� ►��i�i�i�i�i�i �i�i�i�i�i�i�i ►�i�i�i�i+i�i� ♦�����♦ �������� ►������� is����♦ ♦�����♦ ►�s����, ♦e����e ♦�����♦ ♦������ . ►������• . ♦�����♦ �������t ►������� i������ ♦�����♦ ►.�����, ♦�����♦ ♦�����♦ ♦������ ►������� •i�i�♦�i�i�i� i�i�i�i�i�i�i� ►��i�i�i�i�i�i i��i�i�i�i�i�i ►�i•se��i�i�is, . �i�i�i�s�i�e� ��i�i�i�i�i�i'� �i�i�i�i�i�i�i �i�i�i�s�i�i�i ►�i�i�i�i�i�i� �i�i♦i�s�i�i� ��i�i�i�i�i�i� �i�i�i�i�i�i°� �i�i�i�i�i�i�i r�i�i�i�i�i�i� ������������� �������������� ►������������� i�������������. �������������� .� � -!i!i!i!i!i!i!�i2i!i!i!i!i!i!�!�!i!i!i!�!�!i�!i!�!�!i!i!i!i�►�i!i!i!�!i!i! • � � s � f ss � • • � � � . ,. � � � � � � � � � - �