Management Report and Recommendations 12/31/1984

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City of Lino Lakes, Minnesota Management Report, Page 37 Depositories /Investment Recording Minnesota Statutes Ch. 118 require the approval of all depositories of the City. For 1984, the City overlooked this requirement. We recommend that the City approve depositories annually. Currently, and as part of the restriction of the existing accounting system, the City does not record investment transactions completely on a monthly basis. We recom- mend that subsidiary records be updated to assure timely recording of all investment transactions. Legal Compliance Minnesota Statutes 6.65 has increased the scope of audit procedures which will be required to complete the audit of the annual financial report of the City of Lino Lakes beginning with the 1985 audit. The Statute reads as follows: 6.65 MINIMUM PROCEDURES FOR AUDITORS, PRESCRIBED. The state auditor shall prescribe minimum procedures and the audit scope for auditing the books, records, accounts, and affairs of local governments in Minnesota. The minimum scope for audits of all local governments shall include financial and legal compliance audits for fiscal years ending after January 15, 1984. The state auditor shall establish a task force to promulgate an audit guide for legal compliance audits. The task force shall include representatives of the state auditor, the attorney general, towns, cities, counties, school districts and private sector public accountants. The formal guidelines have not yet been issued by the Office of the State Auditor as directed by the Statutes. The primary reason for the delay is the fact that the legislature passed the law and did not provide any funds for the State Auditor to research and establish procedures and guidelines. 1 1 1 1 1 1 1 1 1 1 1 1 1