HomeMy WebLinkAbout2A, 2010 Audit Presentation ,-AFQEN HILLS
Request for Council Action
2A
Prepared By: Sue Iverson,Director of Finance
And Administrative Services Council Meeting Date: June 27,2011
2010 Audit Presentation
Budgeted Amount: Actual Amount: Funding Source:
NA NA NA
Recommendation:
The City's auditor, Aaron Neilson of Malloy, Montague, Karnowski, Radosevich & Co., PA
(MMKR) will present the 2010 audit, Special Purpose Reports, and the Management Report.
Supporting Documents:
1. Memorandum dated June 27, 2011 from Sue Iverson.
2. 2010 City of Arden Hills Comprehensive Annual Financial Report.
3. 2010 Special Purpose Audit Report.
4. 2010 Management Report.
EN HILLS
MEMORANDUM
DATE: June 27, 2011
TO: Honorable Mayor and City Council
Patrick Klaers, City Administrator
FROM: Sue Iverson, Director of Finance and Administrative Services
SUBJECT: 2010 City Financial Statements
Background/Discussion:
The City's 2010 Financial Statements have been completed and submitted to both the State Auditor and
the GFOA. The City's auditor will be present at the June 27, 2011 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, 2010. The total general fund balance at December _
31, 2010 was $1,763,192 or 50.4% of total general fund expenditures for 2010. The general fund balance
decreased by$59,068 as revenues were less than expected due to the economy. The City's total net assets
increased by $2,124,555 and the combined ending fund balances for governmental funds were
$10,775,679, and combined ending working capital balance for enterprise funds were $2,621,579.
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 ongoing basis and attempts to maximize the
segregation of duties in all areas within the limits of the staff available. We did get a finding on not
having enough pledged collateral with an investment at Affinity Plus Federal Credit Union. This was due
to a number of staff changes at Affinity Plus as the pledged collateral note expired and new pledged
collateral was not in place before December 31, 2010. This has been corrected and the new pledged
collateral has been set to run the term of the investment. We are pleased with the outcome of the audit.
Memo
City Council
2010 Financial Statements
2
Staff Recommendation:
At the June 27, 2011 meeting, staff will recommend a motion to accept the 2010 Financial Statements for
the City of Arden Hills as presented.
Please feel free to call me if you have any questions.