Management Report and Recommendations 12/31/1982

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City of Lino Lakes Management Report, Page 29 1 For 1982, the City designated the Revenue Sharing monies to be expended for "roads ". II For 1983, the City has designated Revenue Sharing monies for the "police department ". Budgeting of Revenue Sharing monies should be on a basis consistent with the level of detail of other City budgets. Therefore, sufficient detail should be included in the Revenue Sharing budget to determine the intended use (such as police - salaries, roads - equipment, etc.). In addition to budgeting on this basis, the City should have the ability to support expenditures with specific vouchers (or checks). We recommend that a record be maintained at the City which details specific expenditures funded with Federal Revenue Sharing monies. The rules and regulations of Revenue Sharing also require periodic compliance audits. The City has complied with this regulation through filing of such audits for 1978 and 1981. The next required audit (under current guidelines) will be for. 1984. Debt Service Funds The combining financial statements of the City's Debt Service Funds are presented in Statements 10 and 11 of the 1982 Annual Financial Report. Debt Service Funds are governmental type funds used to account for accumulation of resources for, and the payment of, principal and interest on general debt. The City had three general debt bond issues outstanding during 1982. During 1982, the City retired two of these issues as follows: • the Municipal Building Bonds of 1970. • the 1980 Certificates of Indebtedness. The Municipal Building Bonds had cash assets remaining of $14,620 after final bond payment. This amount was transferred to the General Fund per Council authorization in 1982. The 1980 Certificates •f Indebtedness had remaining cash assets of $465 at December 31, 1982. We recommend that the City close this fund in 1982 to the City's General Fund with appropriate City Council approval. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1