Management Report and Recommendations 12/31/1982

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1� City of Lino Lakes Management Report, Page 42 IIstudy may be overburdensome to instill in one rate change. The City could, however, adopt a plan for annual increases. The rates will require substantial increases, but can be achieved gradually. We concur with the need for increased utility rates and IIrecommend that the City adopt a plan for such increases. 1 1 1 1 1 Internal Accounting Controls Our examination included a review of the City's system of internal control. A system of internal control comprises the plan of organization and all of the coordinate methods and measures adopted within a City to safeguard its assets; check the accuracy and reliability of its accounting data; promote operational efficiency; and insure adherence to Council policies and various Federal, State and local statutes. The City adopted an assessment roll on August 9, 1982 (Resolution 82 -15). That resolution made reference to a copy of the proposed assessment and made that listing a part of the resoultion. We could not locate the listing which was to be attached to the ' resolution in the official records of the City. Minutes and resolutions are a vital link to determining Council actions and must be transcribed on an accurate and timely basis. Our audit disclosed that the City is maintaining this documentation in a timely" and accurate manner with the exception of the above resolution. We recommend that the City continue efforts to maintain minutes and resolutions on a timely and accurate ' basis. 1 An accounting system is a part of the overall system of internal control and it is the means by which information is accumulated, recorded, classified, summarized and IIreported. The prime purpose of any accounting system is to provide complete and accurate financial information: (1) in proper form, (2) on a timely basis and, (3) cost efficiently. 1 1 1