|
Lars nAllen-
<br />Weishair & Co., LLP
<br />ACHIEVE THE DESIRED EFFECT'
<br />Business Consultants a Certified Public Accountants
<br />To the Honorable Mayor and
<br />Members of the City Council
<br />City of Lino Lakes, Minnesota
<br />In planning our audit of the General purpose financial statements of the City of Lino Lakes as of and for
<br />the year ended December 31, 2000, we considered its internal control structure in order to determine
<br />our auditing procedures for the purpose of expressing our opinion on the general purpose financial
<br />statements and not to provide assurance on the internal control structure.
<br />During the course of our audit, several items came to our attention that we feel could be addressed by
<br />the City of Lino Lakes to more efficiently run the City's operations or improve its internal controls. We
<br />herein submit the following suggestions to the City of Lino Lakes for their consideration.
<br />Auditor Comments:
<br />Capital Proiect Deficits
<br />The financial statements for the capital project funds are presented in Statements 13 and 14 of the
<br />2000 Annual Financial Report. As of December 31, 2000 many of the capital project funds have deficit
<br />fund balances. These deficits total $5,425,964. The fund balances at December 31, 2000 and 1999 for
<br />these funds are as follows:
<br />Fund
<br />Dedicated Parks
<br />MSA Construction
<br />1994 Construction
<br />1997 Construction
<br />1998 Construction
<br />Town Center Project
<br />Tax Increment Administrative
<br />Tax Increment # 1-6
<br />Tax Increment # 1-7
<br />Tax Increment # 1-9
<br />Tax Increment # 3-1
<br />Fund Balance (Deficit)
<br />December 31, Increase
<br />1999 2000 (Decrease)
<br />$ (40,342) $ (155,052)
<br />(424,881) (425,143)
<br />(436,219) -
<br />(1,205,499) (1,374,287)
<br />(2,579,952) (2,839,838)
<br />26,290 (1,690)
<br />(7,184) (12,974)
<br />(40,536) (40,950)
<br />(458,497) (421,838)
<br />(11,896) (8,238)
<br />(316,270) (145,954)
<br />$ (114,710)
<br />(262)
<br />436,219
<br />(168,788)
<br />(259,886)
<br />(27,980)
<br />(5,790)
<br />(414)
<br />36,659
<br />3,658
<br />170,316
<br />$ (5,494,986) $ (5,425,964) $ 69,022
<br />The City needs to review each of these funds to determine how the deficits will be eliminated. In some
<br />cases, transfers from other funds may be needed to eliminate the deficits. These transfers should be
<br />made as soon as the amount can be determined so as not to overstate the fund balances in the
<br />transferring funds. We also recommend that the City close funds once the related projects are
<br />complete.
<br />(7)
<br />
|