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Home My WebLink AboutAudit Review April 28, 2009 2008 Audit Review Cit y of Oak Park Heights, Minnesota April 28, 2009 David J. Mol, CPA Member of ItLB'tnternational Reports Issued ♦ Opinion on financial statements ♦ Report on Compliance with Minnesota Statutes ♦ Report on Internal Control ♦ Management / Audit Committee Letter r Member of HLB International 2 S Tautgss RsdpatH� Ltd_ Annual Financial Report ♦ The financial statements are the responsibility of management ♦ The role of the Independent Auditor is to report on the fair presentation of the financial statements ♦ Audit standards followed: — GAAS — GAGAS ♦ "Clean opinion" on the 2008 financial statements Member of Hk.B International � � Tsutass Ftsdps�r, L.,'td. Financial Results Governmental Business -type Activities Activities Program Revenue : Charges for services 503,000 1,207,000 Operating grants and contributions 91,000 - Capital grants and contributions 10,000 - total program revenue 604,000 1,207,000 Program Expenses (3,984,000) (1,136,000) Net expenses funded by property taxes and other sources (3,380,000) 71,000 Property taxes 3,261,000 - Unrestricted grants 57,000 - Investment income 607,000 43,000 Other 43,000 - Abatement of property taxes (115,000) - Interfund transfers 432,000 (432,000) Total general revenues 4,285,000 (389,000) Increase in net assets $905,000 ($318,000) Member of HLB Intemationai 4 M a e Tautgas Rscipatti, Ltd. Budget Performance ♦ General Fund Budqet Actual Variance Revenue $3,986,000 $4,006,000 $20,000 Expenditures 3,119,000 3,085,000 34,000 Revenue over expenditures 867,000 921,000 54,000 Other financing sources (uses): Transfers in - 47,000 47,000 Transfers out (867,000) (867,000) - Net change in fund balance $0 $101,000 $101,000 Member.o€ HLEVInternatiortai Tsutpss #tr►dpsth. L,mtd. General Fund Reserves General Fund Balance December 31, 2007 2008 Designated for: Cash flow $1 $1 Contingent employee benefits 183 188 General contingency 595,000 542,000 Subtotal - designated 2 2 Undesignated 39 345 Total fund balance $2 $2,616 Member of HLB International 6 Tautg ®s R®dpat* Ltd_ Debt Service Funds City of Oak Park Heights, Minnesota Projection of Cashflow General Obligation Improvement Bonds of 1998 Total Cash Balance Property Special Other Investment Projected Debt Other Cash Balance Year January 1 Taxes Assessments Receipts Interest Receipts Payments Disbursements December31 2008 $ - $ - $ - $242,303 $7,457 $249,760 $122,513 $ - $127,247 2009 127,247 352,800 - - 2,450 355,250 380,026 - 102,471 2010 102,471 372,400 - - 2,050 374,450 391,650 - 85,271 2011 85,271 382,200 - - 1,775 383,975 392,526 - 76,720 2012 76,720 392,000 - - 1,658 393,658 403,030 - 67,348 2013 67,348 401,800 - - 1,529 403,329 412,845 - 57,832 2014 57,832 411,600 - - 1,401 413,001 422,018 - 48,815 2015 48,815 421,400 - - 1,289 422,689 430,418 - 41,086 2016 41,086 431,200 - - 1,208 432,408 438,000 - 35,494 2017 35,494 441,000 - - 1,167 442,167 449,720 - 27,941 2018 27,941 450,800 - - 1,093 451,893 460,470 - 19,364 2019 19,364 460,600 - - 1,005 461,605 470,346 - 10,623 2020 10,623 475,300 - - 935 476,235 484,324 - 2,534 2021 2,534 490,000 - - 889 490,889 496,724 - (3,301) 2022 (3,301) 504,700 - - 887 505,587 513,125 - (10,839) 2023 (10,839) 519,400 - - 850 520,250 533,325 - (23,914) 2024 (23,914) 534,100 - - 713 534,813 551,922 - (41,023) 2025 (41,023) 548,800 - - 489 549,289 578,882 - (70,616) 2026 (70,616) 563,500 - - 40 563,540 598,512 - (105,588) 2027 (105,588) 583,100 - - - 583,100 611,200 - (133,688) 2028 48,815 607,600 - - 2,819 610,419 636,840 - 22,394 Total $9,344,300 $0 $242,303 $31,704 $9,618,307 $9,778,416 $0 Member of HLR International, T'�utp�a R�dPath. Ltd. Capital Project Funds December 31, Increase Fund I 2007 2008 (Decrease) Comments Capital Revolvinq 1 $791,554 1 $820,496 $28,942 Budgeted Projects and Equipment Revolving 931,631 794,248 (137,383) see later comments Park Development 1 485,002 1 485,8531 851 1 Street Reconstruction 1 951,872 1,317,841 365,969 1Received $320,000 from General Fund Receives annual transfer from Water and Renewal and Replacement I 3,243,027 3,559,002 315,975 Sewer in amount equal to depreciation Brekke Park Memorial 1 368 384 161 Water Tower Rental $112,113 transfer to Water Tower rehab in 86,590 _ (86, 590) 2008 City Hall Improvements 1 - 1 5,840,475 5,840,475 1$6.3M bonds issued in 2008 Received transfer from Water Utility ($178,847) Water Tower Rehabilitation (214,813) 80,153 294,966 and Water Tower Rental ($112,113) Storm Sewer Renewal and Replacement - 1 78,000 78,000 1 New fund for 2008. $138,875 transfer to 1998 Bonds Debt Service Sanitary Sewer Connection 479,286 356,564 (122,722) Ito prepay bonds $48,125 transfer to 1998 Bonds Debt Service Water Connection 718,130 699,852 (18,278) to prepay bonds $88,000 transfer to 1998 Bonds Debt Service Storm Sewer Connection 915,153 864,247 (50,906) to prepay bonds Well Rehabilitation 24,950 32,268 7,318 Sewer Rehabilitation 68,134 48,295 (19,839) Totals $8,480,884 $14,977,678 $6,496,794 1 � Member of HLB International $ R OS S O Tautg ®s R®dpath, Ltd Budgeted Projects Fund Balance Intra -fund Balance Purpose 12/31/07 Revenues Expenditures Transfer 12/31/08 Sealcoat /crack seal $103,430 $100,000 $86,283 $ - $117,147 Outdoor storage 50,000 15,000 - - 65,000 Municipal building 157,575 10,000 6,586 - 160,989 Recreation: Park and trail improvements 99,353 193,700 480,881 190,000 2,172 Trail maintenance 5,000 5,000 - - 10,000 Park building maintenance - 5,000 - - 5,000 Computers 21,226 4,000 11,910 - 13,316 Vehicles: Police (36,105) 83,000 40,420 - 6,475 Public works 75,079 29,900 23,425 - 81,554 Building official - 15,000 14,762 - 238 Furniture and equipment: Building inspections 78 - - - 78 Police 7,180 400 3,270 - 4,310 Trees 134,948 - 7,698 - 127,250 Public works equipment 5,000 60,000 5,232 - 59,768 Police radio equipment 32,055 - 6,250 - 25,805 Police computer equipment 126 - 126 Comprehensive plan 23,622 - 21,250 - 2,372 Coalition of utility cities 16,000 - - 16,000 Civil defense 10,000 - - - 10,000 Unallocated 227,064 59,142 9,558 (190,000) 86,648 Totals $931,631 $580,142 $717,525 $0 $794,248 Member of HLB International. ORES Tsu9tpw= Rsdpath, Ltd. Water Util $800,000 Water Operating Revenue & $700,000 Expense $600,000 $500,000 Transfer Out Depreciation $400,000 Y All Other Expenses Contractual $300 - - - -- - -- Services $200,000 -- $100,000 $O 2001 2002 2003 2004 2005 2006 2007 2008 Member of HLB International 10 Powa Tautg ®s R ®dpatti� Ltd_ Sewer Utility $900,000 Sewer Operating $800,000 Revenue & Expense $700,000 $600,000 Transfer Out $500,000 IIIIIIIIIIIIIIIIDepreciation Personal Services $400,000 All Other Expenses $300,000 $200,000 $100,000 $O 2001 2002 2003 2004 2005 2006 2007 2008 Member of HLB International ONES Tsutgos FLsdpatl�v, Ltd. Storm Sewer Utilit $80,000 Storm Sewer s Operating $70,000 Revenue & Expense $60,000 - - - - -- $50,000 Transfer Out $40,000 All Other Expenses ® Contractual Services $30,000 - - - $20,000 — $10,000 — $0 2001 2002 2003 2004 2005 2006 2007 2008 Member of HLB Intemational 12 Ru w Tautgas Radpatl-�� Ltd n R e po rt State C o m I i a ce ♦ Required by Minnesota Statute §6.65 ♦ OSA established a task force to develop audit guide for legal compliance ♦ Audit guide covers seven categories 1) contracting and bidding 2) deposits and investments 3) conflicts of interest 4) public indebtedness 5) claims and disbursement 6) other miscellaneous provisions 7) Tax increment provisions ♦ No findings of noncompliance for 2008 Member of HOB International 13 Tautgss Rsdpati� Ltd. Report on Internal Control ♦ Two internal control findings reported — Financial statement preparation — Audit adjustments Member of HLB Intemational 14 ROP O S Taaatgas Rsdpath. Ltd_ Communication to Those Charged with Governance • Audit firm responsibility under U.S. audit standards. • Planned scope and timing of the audit. • Significant accounting policies. • Accounting estimates. • No difficulties encountered in performing the audit. • Audit Adjustments. • Disagreements with management. • Consultations with other auditors. • Issues discussed prior to retention of auditor. Member of HLB International 15 ow Tautg ®s Rsdpath Ltd