2B, 2011 Audit Presentation - Laserfiche WebLink

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'It ,- IQENl,HILLS MEMORANDUM DATE: June 25, 2012 TO: Honorable Mayor and City Council Patrick Klaers, City Administrator FROM: Sue Iverson, Director of Finance and Administrative Services 4�4� SUBJECT: 2011 City Financial Statements Background/Discussion: The City's 2011 Financial Statements have been completed and will be submitted to both the State Auditor and the GFOA. The City's auditor will be present at the June 25, 2012 City Council meeting to give an overview and answer questions. The auditors have issued an unqualified ("clean") opinion on our financial statements for the year ended December 31, 2011. The total general fund balance at December 31, 2011 was $2,151,335 or 60% of total general fund expenditures for 2011 and 53% of 2012's budgeted expenditures less transfers. The general fund balance increased by $387,849 as revenues were greater than expected due to conduit debt fees and the building permit and fees from the new Pulte Homes development and Presbyterian Homes. The City's total net assets increased by $2,705,601 and the combined ending fund balances for governmental funds were $10,562,676, and combined ending working capital balance for enterprise funds were $3,248,534, and internal service funds were $377,772. We have completed the report in the form prescribed by the Government Finance Officers Association of United States and Canada (GFOA) for their Certificate of Achievement for Excellence in Financial Reporting. In order to qualify for this, the report has to be published in an easily readable and efficiently organized Comprehensive Annual Financial Report (CAFR) that satisfies both accounting principles generally accepted in the United States of America and applicable legal requirements As a note of information, the Auditing Standards are constantly increasing and changing. With these changes, you will see increased findings. This does not mean that the City has done anything wrong compared to previous years, only that the reporting requirements have become much stricter. Many cities are experiencing these findings, and the findings are expected to increase for all cities as these standards become stricter. We continue to have the finding related to "Segregation of Duties". The "Segregation of Duties" finding is common to organizations of our size. Staff continues to review and make improvements to its internal control structure on an