07-10-2013 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JULY 10, 2013 this balance has been built up given the uncertainty in Local Government Aid (LGA); therefore, the City has been conservative in transferring funds out. It now appears that LGA will be stable for the next couple of years, but, in the Administrator's opinion, there still future uncertainty. With regard to the State Legal Compliance Report, Moeller noted that this report is required by State Statute and the Office of the State Auditor established a task force that developed an audit guide for legal compliance. The audit guide covers seven categories, which Moeller reviewed. She noted that there are no compliance findings in 2012. With regard to the Report on Internal Control, Moeller noted two findings - lack of segregation of duties and audit adjustments. She pointed out that the City has had the finding on lack of segregation of duties for many years, and which is the result of having a small staff. Even if staff were added, Moeller indicated it would be unlikely that the finding would be resolved. With regard to the audit adjustment finding, Moeller reported that this is a common finding, and relates to any significant adjustments that are required as the result of the audit. The City Administrator explained that this relates to reimbursement to the City from Metropolitan Council Environmental Services (MCES) for a sewer lining project. The City showed the reimbursement in 2013 when it was applied for (February) and received (April), and it should have been booked as a receivable in 2012 when the payment to the contractor was made as it was part of the 2012 Budget document. Moeller agreed that this was just a timing issue. Moeller reviewed the Communication With Those Charged With Governance, and reported that there were no disagreements with management or significant difficulties encountered in performing the audit. Moeller thanked City staff for their assistance during the audit. She again noted the clean opinion issued for the City for 2012. The City Administrator indicated that audit documents are available at the City Center and will be on the City's web site. 1-le also noted that the Finance Director began working for the City at the end of July, 2012, and noted that she has done an excellent job, especially given the fact we were short on accounting staff for over six months. The Council thanked Moeller for her presentation. Montour introduced the following resolution and moved its adoption: RESOLUTION NO. 2013 -7 -122 — ACCEPTING THE 2012 AUDIT AS PRESENTED BY TAUTGES REDPATH, CITY AUDITORS 3