Management Report and Recommendations 12/31/1982

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City of Lino Lakes Management Report, Page 33 Community Development Block Grant The Community Development Block Grant (CDBG) Fund was established in 1982 to account for the financial activity related to the projects to be funded by the CDBG program. The City entered into an agreement with Anoka County to receive CDBG funds. The County of Anoka, along with other governmental units, were awarded the Grant. The City of Lino 1 Lakes is considered to be a sub - grantee and will have to comply with the provisions of the grant agreement. We recommend that the City determine the compliance procedures that will be required and document in City records that they have complied. Proper documentation with the grant agreement will aid the City in receiving the monies applied for in reimbursement of City expenditures. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 In 1982, the City appropriated the 1981 and 1982 block grant funds for: • Construction of Senior Citizen facility. • Alexander House. The City has incurred preliminary expenses in developing the plan for the Senior Citizen facility in the amount of $5,316 in 1982 as follows: Expenditures: Architectural $ 5,309 Other 7 Total expenditures $., 5,316 Grant revenue equal to the above amount has been recorded as a receivable at 1 December 31, 1982 under the 100% reimbursement feature of the CDBG program. The City is contemplating an expansion to the project to include City Hall upgrading. Such expan- sion must have a viable financing source. Should the City expand the project to have a portion funded by the City, detail records of cost allocations must be maintained to allow for segregation of City versus CDBG types of expenditures. We recommend that the City establish procedures to maintain such accounting data should the expansion to the project be approved. 1