Management Report and Recommendations 12/31/1982

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City of Lino Lakes Management Report, Page 45 Certain financial information is readily available only at the date of issuance of the Annual Financial Report. In the past, the need for timely financial data regarding the financial position of the various funds of Cities was not always urgent. The current economic environment and the State budget crisis increases the need for timely financial data in the management of Minnesota Cities. We feel that full implementation of the financial accounting system should be made a top priority of the City. Full implementation should include: • Obtaining capability (in -house computer system or ser- vice bureau system) which will provide electronic data processing for accounting records on the accrual /modified accrual basis in accordance with Minimum Reporting Standards for Minnesota Cities. • Full general ledger accounting controls over all assets, liabilities and equity accounts in addition to revenue and expenditures. • Recording of the January 1, 1983 beginning account balances based upon the December 31, 1982 audited balances. • Gradual conversion from the cash mode to the accrual/ modified accrual mode with complete conversion projected to occur by December 31, 1983. • Greater utilization of City personnel (rather than outside consultants) to perform the annual year -end closing process. • Periodic cash -flow projections of all debt service funds to the final maturity of each bond issue. • Implementation of internal audit techniques and procedures to timely assure the accuracy and propriety of recorded transactions and, therefore, internal financial reporting. • Implementation of internal periodic review procedures (along with internal audit procedures) to assure that the City's internal financial accounting system responds to changing situations on a timely basis and continues to be a viable tool by which to manage the financial operations of the City. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1