Loading...
HomeMy WebLinkAboutOPH Final Issued LC and IC - 2011 1 TAuTGEs REDPATH, LTD. 1 Certified Public Accountants REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERNME`NT A UDITING STANDA RDS To the Honorable Mayor and Members of the City Council City of Oak Park Heights, Minnesota We have audited the financial statements of the governmental activities, the business -type activities, each major, fund, and the aggregate remaining fund information of the City of Oak Park Heights, Minnesota as of and for the year ended December 31, 2011, which collectively comprise the City of Oak Park Heights, Minnesota's basic financial statements and have issued our report thereon dated April 2, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control over Financial Reporting In planning and performing our audit, we considered the City of Oak Park Heights, Minnesota's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Oak Park Heights, Minnesota's internal control over financial reporting. Accordingly, we do not express an opinion of the effectiveness of the City of Oak Park Heights, Minnesota's internal control over financial reporting. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies or material weaknesses have been identified. However, as described in the accompanying schedule of findings and responses, we identified one deficiency in internal control over financial reporting that we consider to be a material weakness. 4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com Equal Opportunity Employer 100- Percent Employee -Owned HLB Tautges Redpath, Ltd. is a member of HLB International, a world -wide network of independent accounting firms and business advisors. Report on Internal Control over Financial Reporting and on Compliance and Other Matters Page 2 A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. we consider the deficiency described in the accompanying schedule of findings and responses as finding 2011 --1 to be a material weakness. Compliance and other Matters As part of obtaining reasonable assurance about whether the City of Oak Park Heights, Minnesota's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing standards. The City of Oak Park Heights, Minnesota's response to the finding identified in our audit is described in the accompanying schedule of findings and responses. we did not audit the City of Oak Park Heights, Minnesota's response and, accordingly, we express no opinion on it. This report is intended solely for the information and use of the City of Oak Park Heights, Minnesota's City Council and management and is not intended to be, and should not be, used by anyone other than these specified parties. X 4 HLB TAUTGE S REDPATH, LTD. April 2, 2012 CITY OF OAK PARK HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND RESPONSES For The Year Ended December 31, 2011 2011 -1 Prior Period Adjustment Criteria: A City's internal controls should allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. Condition: During 201 1, the City detected misstatements to utility revenues that resulted in a prior period adjustment, as described in Note 16 to the financial statements. Cause: The City was charging a storm sewer fee on tax - exempt properties. During 2011, staff learned a City ordinance prohibited storm sewer fees from being charged to such property owners. Effect: Previously reported customer billing revenue in the Storm Sewer Utility Fund was overstated by $69,132. The City is providing refunds to property owners who were over charged. Recommendation: We recommend the City continue to review its billing procedures, verify utility charges are correct for similar properties, and strengthen internal controls to prevent a recurrence. Views of Responsible Officials and Corrective Action Plan: The City has taken steps to resolve the issue, including issuing refunds to affected customers, and has implemented policies and procedures to prevent other inaccurate charges in the future. TAuTGEs REDPATH, LTD. Certified Public Accountants REPORT ON COMPLIANCE WITH MINNESOTA LEGAL COMPLIANCE AUDIT GUIDE FOR POLITICAL SUBDIVISIONS To the Honorable Mayor and Members of the City Council City of Oak Park Heights, Minnesota We have audited the financial statements of the City of Oak Park Heights, Minnesota, as of and for the year ended December 31, 2011 and have issued our report thereon dated April 2, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the provisions of the Minnesota Legal Compliance Audit Guide for Political subdivisions, promulgated by the State Auditor pursuant to Minnesota Statutes Section 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Political subdivisions covers seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing. Our study included all of the listed categories. The results of our tests indicate that for the items tested, the City of Oak Park Heights, Minnesota complied with the material terms and conditions of applicable legal provisions. This report is intended solely for the information and use of the City of Oak Park Heights, Minnesota's City Council and management and is not intended to be, and should not be, used by anyone other than these specified parties. 11 J O& f 4*e HLB TAUTGES REDPATH, LTD. April 2, 2012 4810 white Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com Equal Opportunity Employer loo - Percent Employee -owned HLB Tautges Redpath, Ltd. is a member of HLB International, a world -wide network of independent accounting firms and business advisors.