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<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />515 Little Canada Road, Little Canada, MN 55117-1600 <br />(651) 766-4029 / FAX: (651) 766-4048 <br />www.littlecanadamn.org <br />MAYOR <br />Tom Fischer <br /> <br />COUNCIL <br />Teresa Miller <br />Amanda Gutierrez <br />Dave Miller <br />Chris Kwapick <br /> <br />  <br />  <br />TO: Mayor Fischer and Members of the City Council <br /> <br />FROM: Sam Magureanu, Finance Director <br /> <br />DATE: July 26, 2023 <br /> <br />RE: 2022 Annual Comprehensive Financial Report <br />  <br />ACTION REQUESTED <br /> <br />Receive and accept the 2022 Comprehensive Annual Financial Report (ACFR).  <br />  <br />BACKGROUND <br /> <br />Michelle Hoffman and Lance Lauinger with the City’s auditing firm, CliftonLarsonAllen (CLA) <br />will present the 2022 ACFR highlights. <br /> <br />The auditors have provided an unmodified opinion on the financial statements, which is the <br />highest opinion that can be given. The City is required by Minnesota law to have an external <br />audit completed annually. The audit provides reasonable assurance to the City Council and <br />stakeholders that the financial statements are free of material misstatement and that the financial <br />statements are complete and reliable. <br /> <br />The Transmittal Letter (pages 1-7) and the Management’s Discussion and Analysis (pages 14- <br />24) in the ACFR provide an overview of the 2022 City’s financial operations and results. <br /> <br />Audit Findings: <br /> <br />The Finance department performed very well during the 2022 fiscal year and has the staff capacity to <br />complete all required tasks for the foreseeable future. A summary of the audit findings is provided <br />below. Staff takes all audit findings seriously and take measures to correct in future as applicable. <br /> <br />As noted above, the City of Little Canada received the highest opinion that can be given. The audit <br />findings below present an opportunity to strengthen our internal processes and further develop staff <br />knowledge and abilities. <br /> <br /> Limited Segregation of Duties –The finding was noted since the City has limited staff in the <br />Finance Department (1.8 FTE’s) and is unable to maintain strong segregation of duties. For <br />example, the Finance Director has access to City assets (cash) and also performs the bank <br />reconciliation. This issue was initiated by the Finance Director during the audit and after