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HomeMy WebLinkAbout2019 Power Point City of Oak Park Heights, Minnesota 1 Email: dmol@redpathcpas.comPhone: 651.407.5803PartnerDavid Mol, CPA April 27, 20212020 Audit Review Reports Issued by Auditor 2 with GovernanceAudit Management Letter / Communication to Those Charged Report on Minnesota Legal Compliance Report on Internal ControlsOpinion on the Fair Presentation of the Financial Statements Opinion on Financial Statements 3 A “clean” opinion was issued on the 2020 financial statements.•What is the result?whether the financial statements are free of material misstatement.Plan and perform the audit to obtain reasonable assurance about •GAGAS (GAO)–GAAS (AICPA)–Audit Standards•How did we do it?established accounting principles and free of material misstatement.Determine the financial statements are presented in accordance with •What did we do? Report on Internal Controls 4 No findings on internal control over financial reporting.•What is the result?with management and reported to the City Council.Deficiencies in internal control that are identified are discussed •expressing an opinion on the financial statements.their effectiveness in order to design our audit procedures for We gained an understanding of internal controls in place and •What did we do? Report on Minnesota Legal Compliance 5 No items of noncompliance noted.•What is the result?Select sample of transactions to test for compliance with statutory provisions.•How did we do it?Depositories of public funds and investments–Tax increment-Miscellaneous provisions–Claims and disbursements-Contracting bid laws–Public indebtedness-Conflicts of interest–consists of seven sections:Followed the guide published by the Office of the State Auditor. The guide •pertain to financial transactionsDetermine the City has complied with certain Minnesota Statutes / Laws that •What did we do? Communication to Those Charged with Governance 6 expenses and desired transfers to other fundsrates generated sufficient revenue to meet operating –Water and Sewer Funds •General Fund Balance at December 31, 2020 sufficient to meet the Reserve policy •98% for 2020–Assessment collection rate •99% for 2020–Property tax collection rate •Financial indicatorsMore changes in accounting standards on the way.•Other MattersNo disagreements with management.No difficulties encountered in performing the audit.Net Pension Liability ($1,869,000)•No changes for 2020•Accounting policies used and/or changed. Financial Results 7 Increase (Decrease) inFund Balance/ Revenue ExpendituresFund Balance/Net and Otherand OtherTransfersNetPosition FundSourcesUses(Net)Position12/31/2020 General$6,182,000$4,031,000($2,566,000)($415,000)$5,098,000 Special Revenue Funds274,000279,00052,00047,000(67,000) Debt Service Funds105,000872,000684,000(83,000)760,000 Capital Project Funds1,526,0001,328,0002,467,0002,665,00018,535,000 Enterprise Funds1,934,0001,493,000(637,000)(196,000)14,344,000 Total$10,021,000$8,003,000$0$2,018,000$38,670,000 Financial Results 8 Increase (Decrease) inFund Balance/ Revenue ExpendituresFund Balance/Net and Otherand OtherTransfersNetPosition FundSourcesUses(Net)Position12/31/2020 General$6,182,000$4,031,000($2,566,000)($415,000)$5,098,000 Special Revenue Funds274,000279,00052,00047,000(67,000) Debt Service Funds105,000872,000684,000(83,000)760,000 Capital Project Funds1,526,0001,328,0002,467,0002,665,00018,535,000 Enterprise Funds1,934,0001,493,000(637,000)(196,000)14,344,000 Total$10,021,000$8,003,000$0$2,018,000$38,670,000 Financial Results 9 Increase (Decrease) inFund Balance/ Revenue ExpendituresFund Balance/Net and Otherand OtherTransfersNetPosition FundSourcesUses(Net)Position12/31/2020 General$6,182,000$4,031,000($2,566,000)($415,000)$5,098,000 Special Revenue Funds274,000279,00052,00047,000(67,000) Debt Service Funds105,000872,000684,000(83,000)760,000 Capital Project Funds1,526,0001,328,0002,467,0002,665,00018,535,000 Enterprise Funds1,934,0001,493,000(637,000)(196,000)14,344,000 Total$10,021,000$8,003,000$0$2,018,000$38,670,000 General Fund 10 BudgetActualVariance Revenue$6,065,000$6,182,000$117,000 Expenditures4,525,0004,031,000494,000 Revenue over expenditures1,540,0002,151,000611,000 Other financing sources (uses): Transfers out(2,566,000)(2,566,000) - Net change in fund balance($1,026,000)($415,000)$611,000 General Fund Balance Balance per policyMinimum FundBalanceActual Fund Fund Balance 20202019201820172016$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0 11 Water Utility Revenue & ExpenseWater Operating Operating RevenuePersonal ServicesContractual ServicesAll Other ExpensesDepreciationTransfer Out not related to Depr 2020201920182017201620152014 $1,200,000 $1,000,000 $-12 Sewer Utility Revenue & ExpenseSewer Operating Operating RevenueMCESAll Other ExpensesPersonal ServicesDepreciationDeprTransfer Out not related to 2020201920182017201620152014 $1,200,000 $1,000,000 $-13 Storm Sewer Utility transfer Revenue & ExpenseStorm Sewer Operating Operating RevenuePersonal ServicesContractual ServicesAll Other ExpensesTransfer Out 2020201920182017201620152014 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $-14