05/12/1997 Council Minutes (2) - Laserfiche WebLink

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COUNCIL MINUTES MAY 12, 1997 • PRESENTATION OF THE 1996 ANNUAL AUDIT, FRED ESPE In the absence of Fred Espe, Rob Tautges, Tautges, Redpath, Inc., presented the 1996 Annual Audit and explained the City received an unqualified opinion which is the highest opinion given. He reviewed components of the budget and advised there were no findings made, which is favorable. He noted the favorable recognition given to Lino Lakes in receiving a national award, the Certificate of Achievement in Financial Reporting, which is awarded by the National Government Finance Officer's Association and the Minnesota Government Finance Officer's Association. Mr. Tautges presented the Manager's Report which analyzes various funds of the City and provides recommendations. He noted several highlights including the general fund balance increase in 1996 and total fund balance being designated, mostly for cash reserves. He noted 74% of the general fund revenues are received from state aids and property taxes, which are not received until the second quarter of the year. Mr. Tautges explained the City needs an adequate fund balance so that the City will have enough reserves to operate the City until the state aid and property tax levy is received. He also noted the change in financial reporting with regard to investment reporting at market value rather than historical costs. Mayor Landers thanked Mr. Tautges for his report. Council Member Neal moved to accept the 1996 Annual Audit as presented. Council Member 1111 Lyden seconded the motion. Motion carried unanimously. • CONSIDERATION OF ADOPTING A POLICY FOR PETTY CASH REIMBURSEMENT, MARY VASKE Ms. Vaske explained the City currently has no written policy for using petty cash. The Police Department is allotted $100 which is reimbursed at each Council meeting. City Hall has $190 and the Parks Department has $50. Ms. Vaske noted the proposed policy would increase the Police and City Hall Petty cash to $300 each and the Parks Department to $100. She advised the new policy limits access but allows employees to receive their personal money on a more timely basis. Council Member Neal asked if the petty cash is ever audited. Ms. Vaske advised staff does audit it periodically and an outside auditor audits the report once per year. Council Member Neal requested staff submit a report on their periodic audit findings. Council Member Kuether stated she believes employees should be paid from reimbursements, not petty cash. Council Member Neal noted how long it is taking for employees to be reimbursed as it is. PAGE 4