Management Report and Recommendations 12/31/1985

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City of Lino Lakes, Minnesota Management Report, Page 22 1985 included $5,362 of expenditures for the Senior Citizens Council. The City, with consent from Anoka County, has elected to fund the start up costs of the senior Citizens Council with CDBG monies. The City has determined that the Senior Citizen Council should be self sustaining and not require any future City support. The Senior Council's expenditures for its non - City /CDBG financial activities are not included in the City's financial statements. The Senior Council may be required to apply for tax exempt status under the Internal Revenue Code as well as file tax returns. Our office is currently researching this item and will forward our recommendations to City staff upon completion of our research. The City experienced difficulty in reconciling grant reimbursement requests to actual disbursements coded to the Community Development Block Grant fund. This was caused by primarily two factors: • One construction contract for the expansion of City hall as well as the construction of the Senior Citizens Facility. • Delay in submitting grant reimbursement requests for project costs incurred from 1982 through 1984 until 1985. A substantial amount of time was needed in reconciling the various reimbursement requests. We recommend that in the future, the City submit grant reimbursement requests at least quarterly to assure that all disbursements are reimbursed promptly and accura- tely. This fund had a cash overdraft of $7,688 at December 31, 1985. A portion of the overdraft will be reimbursed in 1986 with additional CDBG monies. A portion of a contractor invoice submitted exceeded Anoka County's allocation for that program year by $2,217 and was therefore denied reimbursement. These costs will require City financing or may be covered by the 1986 allotment. We recommend that upon project close -out, all costs not reimbursed with CDBG funds be funded through a transfer from City Council approved sources.