Management Report and Recommendations 12/31/1992

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Wow law Ilmos City of Lino Lakes, Minnesota Management Report, Page 26 Community Development Block Grant The Community Development Block Grant (CDBG) Fund was established in 1982 to account for the financial activity related to the projects to be funded by the CDBG program. The City entered into an agreement with Anoka County to receive CDBG funds. The County of Anoka, along with other governmental units, was awarded the grant. The City of Lino Lakes is considered to be a sub - grantee and must comply with the provisions of the grant agreement. The City has established the compliance procedures that are required to be documented in City records. Proper documentation with the grant agreement has aided the City in receiving the monies applied for regarding the reimbursement of City expenditures. As of December 31, 1992 this fund had a deficit fund balance of $9,800. This deficit is expected to be eliminated through the reimbursement of the Senior citizen coordinator's wages. As of December 31, 1992, the City has not requested funds for the 1992/1993 funding year from the County for the Senior Citizen Program. We recommend that the City apply for reimbursement of CDBG funds on a timely basis. During 1992 the City transferred $11,899 into the CDBG Fund from the General Fund to reduce the fund deficit. The deficit was caused by unreimbursable costs being recorded in the fund. The funding source of this transfer consisted of $11,567 of additional Local Government and Equalization Aid from the State's Local Government Trust Fund and $242 of General Fund reserves. The City has designated its allotment for the funding year 1992/1993 as follows: Surface Water Management $ 11,113 Senior Center Coordinator 9,800 Rise Inc. 2,100 Anoka County Community Action 4,125 Alexandra House 1,600 $28,738