HomeMy WebLinkAbout2B, 2011 Audit Presentation ARZEEN^�HILLS
Request for Council Action 2B
Prepared By: Sue Iverson,Director of Finance Council Meeting Date: June 25, 2012
and Administrative Services
2011 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 2011 audit, Special Purpose Reports, and the Management Report.
Supporting Documents:
1. Memorandum dated June 25, 2012 from Sue Iverson
2. 2011 City of Arden Hills Comprehensive Annual Financial Report
3. 2011. Special Purpose Audit Report
4. 2011 Management Report
'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
Memo
City Council
2011 Financial Statements
Page 2
ongoing basis and attempts to maximize the segregation of duties in all areas within the limits of
the staff available. We are pleased with the outcome of the audit.
Staff Recommendation:
At the June 25, 2012 meeting, staff will recommend a motion to accept the 2011 Financial
Statements for the City of Arden Hills as presented.