Management Report and Recommendations 12/31/1990

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City of Lino Lakes, Minnesota Management Report, Page 19 internal records with regard to special assessments and compare such records periodically to County records. Additionally, Anoka County is not providing detail of penalty and interest on delinquent collections. In light of the magnitude of past delinquencies, this allocation should be provided. We recommend that the City request improved data from the County. During the year end closing process audit procedures disclosed that the County had deleted from the County records several parcels for collection in 1991 for new assessment rolls which were adopted in 1990. This error resulted in $6,936.41 of assessments for the Sunrise Meadows Project and $400,416.34 for the West Central Trunk Project which would not have been collected over the 15 year life of the assessment if left undetected. The County has been informed of the error and will be correcting their records. We recommend that the City establish procedures to proof County assessment reports on a timely basis to detect any future errors. The above procedures will allow the City greater assurance that all of its special assessments are properly spread for collection. Additionally, the City will have the ability to generate year end balances for annual financial reporting with greater ease and accuracy. The increased level of control required is partially a function of increased assessment activity. Special assessments receivable (City -wide) were less than $100,000 in 1979. Assessments receivable were nearly $3.2 million at December 31, 1990 and are projected to increase substantially over the periods if anticipated development occurs. Fixed Assets As discussed in prior management reports, the City does not maintain complete fixed asset accounting records. Advantages of maintaining such a system include the following: • Availability of insurable value amounts. • Increased safeguarding of movable assets. • Availability of database to determine capital equipment replacement needs. • Improved financial reporting. Our firm now offers the service of establishing complete fixed asset systems for cities. We are prepared to: 1) Plan the implementation. 2) Assist in taking physical inventories. 3) Assist in defining historical or estimated historical cost. 4) Enter all such assembled data into a specialized fixed asset system for governments. 5) Generate complete fixed asset reports as of the completion date of the engagement.