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City of Lino Lakes, Minnesota <br />Management Report, Page 15 <br />During 1989, the City received prepayment on a Green Acres parcel. The County had not <br />notified the City of the parcels Green Acre status. Consequently, two years of principal and <br />interest were not collected on this parcel at the time it was prepaid. We recommend that the City <br />review coordination procedures with the County to avoid underpayment of assessments. <br />The above procedures will allow the City greater assurance that all of its special assessments <br />are properly spread for collection. Additionally, the City will have the ability to generate year end <br />balances for annual financial reporting with greater ease and accuracy. The increased level of <br />control required is partially a function of increased assessment activity. Special assessments <br />receivable (City-wide) were less than $100,000 in 1979. Assessments receivable were over $1.6 <br />million at December 31, 1989 and are projected to increase substantially over the periods if <br />anticipated development occurs. <br />Fixed Assets <br />As discussed in prior management reports, the City does not maintain complete fixed asset <br />accounting records. Advantages of maintaining such a system include the following: <br />• Availability of insurable value amounts. <br />• Increased safeguarding of movable assets. <br />• Availability of database to determine capital equipment replacement needs. <br />• Improved financial reporting. <br />Our firm now offers the service of establishing complete fixed asset systems for cities. We are <br />prepared to: <br />1) Plan the implementation. <br />2) Assist in taking physical inventories. <br />3) Assist in defining historical or estimated historical cost. <br />4) Enter all such assembled data into a specialized fixed asset system for governments. <br />5) Generate complete fixed asset reports as of the completion date of the engagement. <br />Maintenance of the system for purchases, sales, disposals and transfers may be maintained on <br />our system or the City may require in -house systems for periodic updates. The project will require <br />City staff time to assist in assembling physical inventories and to edit reports. Upon request, we <br />will prepare an engagement letter which will include timing and estimated costs. <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />