Management Report and Recommendations 12/31/1984

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City of Lino Lakes, Minnesota Management Report, Page 22 City Hall Expansion In 1983, the City expanded the CDBG project to include City Hall upgrading. This part of the construction has been presented separately in the Capital Project financial statements. The City had budgeted the expenditures of this construction in the General Fund for 1984. The construction of a general government (non- assessable) facility is more appropriately accounted for in a Capital Project Fund and therefore all such acti- vity has been segregated. The December 31, 1984 fund balance includes an amount designated to fund this project. We recommend that the City amend the 1985 operating budget of the General Fund and transfer an adequate amount to close this fund upon pro- ject completion in 1985. LAWCON Grant The LAWCON Grant Fund was established to account for the grant awarded to the City for the development of Country Lakes Park. Total grant awarded was $115,713. This grant agreement requires the grantee to properly document all expenditures related to the grant agreement. Documentation of these expenditures is necessary in order for the grantee to earn the grant monies approved. We recommend that the City develop controls to insure that all expenditures related to grants are properly documented and required requests for payments to the granting agency are filed on a timely basis. The fund deficit of this fund is a result of the following activity since inception: Revenue: State Grant (28% of expenditures) Federal Grant (30% of expenditures) Interest on investments Total revenue $ 30,096 32, 247 5,069 Expenditures: Contractor 92,985 Engineering 13,642 Other 1,812 Total expenditures $ 67,412 108,439 Fund balance (deficit) - December 31, 1984 $(41,027)