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PUBLIC PRESENTATIONS – 3B MEMORANDUM DATE: June 29, 2015 TO: Honorable Mayor and City Council Patrick Klaers, City Administrator FROM: Sue Iverson, Director of Finance and Administrative Services SUBJECT: 2014 City Financial Statements Background/Discussion: The City’s 2014 Financial Statements have been completed submitted to both the State Auditor and the GFOA. The City’s auditor, Aaron Nielsen from MMKR, will be present at the June 29, 2015, City Council meeting to give an overview and answer questions. The auditors have issued an unmodified (“clean”) opinion on our financial statements for the year ended December 31, 2014. The total general fund balance at December 31, 2014 was $2,345,942 with $2,324,883 of available balance ($21,059 of the ending balance was in prepaid items) or 50% of total general fund budgeted expenditures for 2015. The general fund balance decreased by $19,764. The City’s total net assets increased by $3,362,962. The combined ending fund balances for governmental funds were $10,930,083; the combined ending working capital balance for the enterprise funds were $1,793,112, and internal service funds were $462,759. We have completed the report in the form prescribed by the Government Finance Officer s 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 may 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 did receive one finding as reported in the Special Purpose Report on Withholding Affidavits on two contracts. We have reviewed our procedures to ensure that certificates are obtained in the future. We are pleased with the outcome of the audit.