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Page 1 of 1 <br /> <br /> PUBLIC PRESENTATION – 4A <br /> <br /> <br /> <br /> <br /> <br />MEMORANDUM <br /> <br />DATE: May 23, 2022 <br /> <br />TO: Honorable Mayor and City Councilmembers <br /> Dave Perrault, City Administrator <br /> <br />FROM: Gayle Bauman, Finance Director <br /> <br />SUBJECT: 2021 City Financial Statements <br /> <br /> Budgeted Amount: Actual Amount: Funding Source: <br /> N/A N/A N/A <br /> Background/Discussion <br /> The City’s auditor, Aaron Nielsen from MMKR, will be present at the May 23, 2022, City Council <br />meeting to give an overview and answer questions. The auditors have issued an unmodified <br />(“clean”) opinion on our financial statements for the year ended December 31, 2021. The total <br />general fund balance at December 31, 2021 was $3,169,812 with $2,899,564 of unassigned <br />balance; the new balance equates to a decrease in the General Fund balance of $210,694. The <br />ending unassigned General Fund balance makes up approximately 55.3 percent of next year’s <br />budgeted expenditures. The City’s total net position increased by $3,450,101. The combined <br />ending fund balances for governmental funds was $10,814,728; the combined ending unrestricted <br />net position for the enterprise funds was $3,921,634, and internal service funds was $164,953. <br /> We have completed the report in the form prescribed by the Government Finance Officers <br />Association of United States and Canada (GFOA) for their Certificate of Achievement for <br />Excellence in Financial Reporting. In order to qualify for this, the report has to be published in an <br />easily readable and efficiently organized Annual Comprehensive Financial Report that satisfies <br />both accounting principles generally accepted in the United States of America and applicable legal <br />requirements. <br /> As a note of information, the Auditing Standards are constantly increasing and changing. With <br />these changes, you may see increased findings. This does not mean that the City has done anything <br />wrong compared to previous years, only that the reporting requirements have become much <br />stricter. One finding was noted in the report related to Segregation of Duties. This finding was <br />downgraded in 2020, from a material weakness to a significant deficiency, due to improvements <br />made in the internal controls over financial reporting. We are pleased with the outcome of the <br />audit. <br /> Attachments <br />A. PowerPoint presentation <br />B. Management Report <br />C. Annual Comprehensive Financial Report <br />D. Special Purpose Audit Report