08-13-2003 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL AUGUST 13, 2003 The foregoing resolution was duly seconded by Blesener. Ayes (5) LaValle, Blesener, Montour, Anderson, Fahey. Nays (0). Resolution declared adopted. 2002 AUDIT Mark Gibbs, Tautges Redpath, Ltd., City Auditor, presented the Council REPORT with the 2002 Audit Report. Gibbs reported that the City received a clean opinion on the audit except with the qualification on fixed assets which will be a requirement for the 2004 Audit. Gibbs informed the Council that 2003 local government aid and market value loss to the City resulting from actions by the State is approximately $196,000. The State will allow the City to levy back 60% of that loss amount. Gibbs reviewed the General Fund audit results in detail noting that the Little Canada does a very good job of budgeting both revenues and expenses close to actual. He also noted the City's designation of fund balances for future use and commended the City for this policy. Gibbs reported on the efforts that the City's accounting staff has had to make as a result of additional requirements by the State, such as a new developer fee and permit report. Gibbs also reported that as part of the 2003 Audit the Governmental Accounting Standards Board (GASB) has expanded audit standards with regard to fraud detection. As part of the 2004 Audit, the City will be required to implement GASB 34 as part of its financial statements. Therefore, Gibbs recommended that the City budget some additional time for accounting staff to meet these requirements. Anderson asked for an explanation on the additional fraud detection procedures. Gibbs replied that the standards require that the audit staff meet prior to beginning an audit to try to identify areas where there is the potential for fraud. The audit staff must then search out this potential including meeting with and interviewing members of the City staff. Gibbs reporCed that the City has very good internal controls, but noted that additional accounting requirements will but additional burden on the accounting staff for future audits. Both the City Administrator and Gibbs commended the Accounting Supervisor the excellent job that she has done again noting the additional duties that she has undertaken. Mr. Blesener introduced the following resolution and moved its adoption: RESOLUTION NO. 2003-8-181-ACCEPTING THE 2002 AUDIT REPORT AS SUBMITTED 6