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.
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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
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1991 1992 BUDGET
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