HomeMy WebLinkAbout2B, 2008 Audit Presentation
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_IDEES
Request for Council Action
Prepared By:
Sue Iverson, Finance Director
Council Meeting Date: July 13, 2009
2008 Audit
Budgeted Amount:
N/A
Actual Amount:
Funding Source:
N/A
N/A
Recommendation:
1. None
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Supportin!! Documents:
1. See the attached memo from Sue Iverson.
2. Financial Report Statement, Management Report, and Special Purpose Report.
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MEMORANDUM
DATE: July 8,2009
TO: Honorable Mayor and City Council
Ronald Moorse, City Administrator
FROM: Sue Iverson, Finance Director
SUBJECT: 2008 City Financial Statements
Backgro undlDiscussio n:
The City's 2008 Financial Statements have been completed and submitted to both the State Auditor and
the GFOA. The City's auditor will be present at the July 13, 2009 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, 2008. The total general fund balance at December
31, 2008 was $1,850,765 or 58% of total general fund expenditures for 2008. The general fund balance
decreased by $320,166 as a $500,000 transfer was made from the General Fund to the Equipment
Building and Replacement Fund. The City's total net assets increased by $617,977 and the combined
ending fund balances for governmental funds were $11,228,367, and combined ending working capital
balance for enterprise funds were $1,977,168.
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 changes to Auditing Standards are 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 findings related to "Segregation of Duties~' and "Timely General
Ledger Reconciliations"'. 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. The
"Timely General Ledger Reconciliations" relates to monthly and year-end reconciliations which are
delayed due to workloads and vacancies. As of June 2009, we have all reconciliations completed, as
previous vacancies are now filled and a finance intern has been added. (Due to the vacancy created by the
Assistant City Administrator position, finance staff essentially took on these duties.) Staff is responding
to these findings, but in light of the circumstances is pleased with the outcome of the audit
Memo
City Council
2008 Financial Statements
2
Staff Recommendation:
Staff recommends a motion to accept the 2008 Financial Statements for the City of Arden Hills as
presented.