HomeMy WebLinkAboutAudit Findings Letter 2-6-74 n /'N
DELAH jNT VOTO & CO., LTD.
CERTIFIED PUBLIC ACCOUNTANTS
WHITE BEAR LAKE, MINNESOTA 55110
PHONE 426.3263 P. O. BOX 8678
February 6, 1974
Mr. Ken Heuer
City of Oak Park Heights
Route #1
Stillwater, Minnesota
Dear Ken:
I would like at this time to comment on my observations during our audit
of the Village records for the year ended December 31, 1973.
Only two errors in recording revenue into funds were noted. They were:
1. Water and sewer connection charges credited to the Storm
Sewer No. 3 Improvement Fund. As the water and sewer
projects were funded by the G.O. Bonds of 1967 and 1968,
all connection charges should be credited to the debt
service fund.
2. The assessments collected for Swager No. 2 Street
Improvement Project were credited to the Swager No. 2
Sewer and Water Improvement Fund. As the project was
funded by the Sealcoating and Street Improvement No. 4
Improvement Fund, the Swager No. 2 Street assessments
should be credited to this fund.
Our December 31, 1973 audit report will provide a basis for correcting these
errors in 1974.
No errors in recording disbursements into funds were noted, The Deputy Clerk
is to be commended for the superior records she maintained during 1973.
In my examination of the improvement funds, I observed:
1. Sealcoatinq and Street Improvement No. 4 Project
The project was authorized in 1972. The sealcoating
portion of the project to be financed by the General
Fund. A $27,000.00 temporary transfer from the
General Fund to the Improvement Fund was authorized
in 1972. The Street Improvement No. 4 ( Swager No. 2
Street) portion of the project to be financed 100% by
a direct assessment to the Swager Brothers.
MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
Mr. Ken Heuer
February 6, 1974
Page 2
It is recommended the $27,000.00 temporary transfer be
made a permanent transfer in 1974 by council resolution.
It is further recommended the council authorize an
additional $3,462.00 permanent General Fund transfer to
the Improvement Fund for the balance required for the
sealcoating portion of the project.
The Street Improvement No. 4 portion of the project was
underassessed $1,156.47. It is recommended the additional
amount be assessed to the developer.
2. Swager Addition No. 3 and Brekke Heights Improvement Fund
The water, sewer, street project was authorized in 1973,
to be financed 100% by a direct assessment to benefited
properties. Although the street portion of the project
was not completed in 1973, the entire project was assessed
in 1973. A comparison of costs and financing provided
shows:
Completed water and'sewer
project costs $39,966.41
Incomplete street project
costs (estimated):
Work in progress,
December 31, 1973 $24,276.26
Encumbrances 4,080.57 28,356.83
Total Costs (Estimated) $67,223.31
Assessment rolls:
Brekke sewer and water
(prepaid) $ 7,848.92
Brekke street (10 year roll) 3,303.00
Swager sewer, water, streets
(20 year roll) 53,016.60 64,168.52
Difference estimated costs
exceeding assessment roll S 3.OS4.79
The assessment procedures as stipulated in Minnesota State
Statute 429.61 were not followed, as the assessment roll
was not formally adopted at a council meeting after
published notification of hearing. The public examiner
is of the opinion the procedures outlined in statute
429.61 should be followed when an assessment roll is to
be extended on the tax rolls over a period of years.
He is of the opinion the assessment procedures need not
be followed only when a project is 100% assessed to one
party and the assessment roll is paid in full upon
completion of the project.
r
Mr. Ken Heuer
February 6, 1974
Page 3
3. Port of Sunnyside Improvement Fund
On January 31, 1973, the council stipulated the developer
of the Sunnyside Marina provide $96,500.00 escrow funds
within sixty days. As of December 31, 1973, the developer
had provided $44,116.43.
Two Cosmopolitan State Bank certificates of deposit with a 6% interest rate
matured during 1973. The bank paid 5 -1%2% interest on the certificates. An
analysis shows:
Certificate Date of Date of Interest Face Interest Interest Interest
Number Purchase Maturity Rate Value Earned Received Receivable
6547 12/31/72 12/31/73 6% $ 46,000 $ 2,76o $2,530 $230
6546 12/31/72 12/31/73 6% 120,800 7,248 6,644 604
$166.800 510.008 $9.174 ��
1 discussed the unpaid interest with an official of the bank and he promised to
remit to the City the balance due immediately.
If you have any questions regarding this letter, do not hesitate to call.
Very truly yours,
DE LA HUNT VOTO & CO., LTD.
1
Helen Halbert, Staff Accountant
HH /kmn
cc: Correspondence File
Working Papers File