Management Report and Recommendations 12/31/1987

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City of Lino Lakes, Minnesota Management Report, Page 49 Financial Accounting System During 1985, the City purchased an in -house computer system. This system is intended to provide the City with the following: • Payroll system. • Utility billing system. • General ledger accounting. • Word processing. The utility billing system, payroll and word processing have been implemented. Our review of this portion of the system indicated that it was functioning as intended. The general ledger accounting system was not functional as of December 31, 1987. The City is reviewing the general ledger package and had projected an implementation date in 1987. The City reconsidered the viability of implementing the general ledger package because MECC has eliminated support of the system. The City is in great need of a computerized general ledger accounting system. The current manual system does not produce timely interim financial reports to manage the City. Year -end efforts to produce financial statements is over - burdensome. The City has budgeted a replacement computer system for 1988. We strongly concur with this deci- sion are are available to review considered systems. Summary During 1988, the City should: • Closely monitor the affects of the lawsuit concerning local government aid and incorporate flexibility into the 1989 budget. (Page 4) • Continue the practice of minimal balances in the City's checking account. (Page 6) • Consider the option of requesting unused MSA construction allotment for main- tenance purposes. (Page 8)