|
IMP
<br />VIMM
<br />Lars nAller
<br />CPAs, Consultants & Advisors
<br />www.larsonallen.com
<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, 2002, 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 Project Deficits
<br />The financial statements for the capital project funds are presented in Statements 13 and 14 of the
<br />2002 Annual Financial Report. As of December 31, 2002 many of the capital project funds have deficit
<br />fund balances. These deficits total $5,587,948. The fund balances at December 31, 2002 and 2001 for
<br />these funds are as follows:
<br />Fund
<br />Dedicated Parks
<br />MSA Construction
<br />1997 Construction
<br />1998 Construction
<br />- Town Center Project
<br />Lake /Apollo Dr Improvement Market Place
<br />Tax Increment Administrative
<br />Tax Increment # 1 -5
<br />Tax Increment # 1 -7
<br />Tax Increment # 1 -8
<br />Maw
<br />Ism
<br />Fund Balance (Deficit)
<br />December 31,
<br />2001 2002
<br />$ (397,460)
<br />(438,615)
<br />(343,018)
<br />(2,661,374)
<br />(29,501)
<br />(360,084)
<br />(17,726)
<br />(138,243)
<br />(18,861)
<br />$ (740,518)
<br />(364,332)
<br />(698,540)
<br />(2,662,115)
<br />(1,081,320)
<br />(26,695)
<br />(14,428)
<br />Increase
<br />(Decrease)
<br />$ (343,058)
<br />74,283
<br />(355,522)
<br />(741)
<br />(1,051,819)
<br />360,084
<br />17,726
<br />111,548
<br />4,433
<br />$ (4,404,882) $ (5,587,948) $ (1,183,066)
<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. The following summary of the Town Center project provides a good example to follow for
<br />reviewing the capital projects deficits.
<br />(8)
<br />Larson, Allen, Weishair & Co., LL
<br />
|