HomeMy WebLinkAbout2B, 2009 City Financial Statements �iRZEN HILLS
Request for Council Action
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Prepared By: Sue Iverson,
Finance Director/Treasurer Council Meeting Date: August 9,2010
2009 City Financial Report
Budgeted Amount: Actual Amount: Funding Source:
N/A N/A N/A
Recommendation:
1. Motion to accept the 2009 audited Financial Statements for the City of Arden Hills
as presented.
Supporting Documents:
1. See the attached memo from Sue Iverson dated August 9, 2010.
/,--ARZEN HILL 5
MEMORANDUM
DATE: August 9, 2010
TO: Honorable Mayor and City Council
Patrick Klaers, City Administrator
FROM: Sue Iverson, Finance Director
SUBJECT: 2009 City Financial Statements
NOTE: The 2009 Financial Statements were delivered to the City Council under separate cover on
Monday, August 2, 2010. The City's Auditor, Aaron Neilson, will present the Council with a summary
report at the August 9, 2010 Council Meeting.
Background/Discussion:
The City's 2009 Financial Statements have been completed and submitted to both the State Auditor and
the GFOA. The City's auditor will be present at the August 9, 2010 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, 2009. The total general fund balance at December
311 2008 was $1,822,260 or 54% of total general fund expenditures for 2009. The general fund balance
decreased by $28,505 as a$123,696 transfer was made from the General Fund to the TCAAP Fund. The
City's total net assets increased by $1,278,967 and the combined ending fund balances for governmental
funds were $10,861,379, and combined ending working capital balance for enterprise funds were
$251715942.
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 Endings. 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 comment on
"Payroll Declarations", this comment results from the increased use of electronic funds transfers,
Memo
City Council
2008 Financial Statements
2
specifically "direct deposits". We have a declaration on the time slips and previously the second
declaration was on the checks when an employee endorsed the check—but we now need to add another
declaration to approve the payment, which we have already instituted for 2010. We are pleased with the
outcome of the audit.
Staff Recommendation:
Staff recommends a motion to accept the 2009 Financial Statements for the City of Arden Hills as
presented.