Management Report and Recommendations 12/31/1991

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City of Lino Lakes, Minnesota Management Report, Page 28 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, were 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 determined 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 reimbursement of City expenditures. During 1991 the City received over $25,000 in CDBG funding which will require the City to obtain a federal single audit in accordance with OMB Circular 128. Audit procedures disclosed that the City has not been requesting reimbursement from the County on a timely basis. The City has designated its allotment for the funding year 1991/1992 as follows: Surface Water Management $ 15,000 Senior Center Coordinator 5,000 Rise Inc. 1,383 Community Action 3,800 Alexandra House 1.384 $ 26,567 Area and Unit Charge Fund On January 11, 1988 the City Council approved Resolution 1 -88 which established the Area and Unit Charge Fund for the City. The purpose of this fund is to collect various connection and area charges to be used to meet debt payments. Before October 1 of each year, the City will estimate the required transfer needed to meet debt payments for the subsequent year. In December, these estimated amounts shall be transferred to the various debt funds. The City has estimated scheduled area and unit assessments needed to meet debt requirements. We recommend that the City monitor actual versus projected area and unit assessment collections to assure that debt payment requirements will be met. This fund will eventually account for area and unit assessments for funding of various debt issues. The City has amended collection procedures.