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HomeMy WebLinkAboutAudit Report 12/31/1964BONHIVER, ANFINSON, HENDRICKSON & CO. CERTIFIED PUBLIC ACCOUNTANTS 10601 OLSON MEMORIAL DRIVE MINNEAPOLIS. MINNESOTA 55427 HOMER A. BONHIVER. C.P.A. DONALD D. ANFINSON. C.P.A. ORIS A. HENDRICKSON. C.P.A. THOMAS E. REARDON. C.P.A. TELEPHONE 545.0421 MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS VILLAGE OF LINO LAKES ANOKA COUNTY, MINNESOTA AUDIT REPORT YEAR ENDED DECEMBER 31, 1964 L L VILLAGE OF LINO LAKES ANOKA COUNTY, MINNESOTA CALENDAR YEAR 1964 INDEX Page Village Council and Administrative Officials 1 Scope of Audit and Accountants' Opinion 2 Statements of Cash Receipts and Disbursements: A - Summary - All Funds 3 B -1 - General Fund 4 - 6 B -2 - Fire Protection Fund 7 B -3 - Civil Defense Fund 7 B -4 - Gopher Control Fund 7 B -5 - Parks and Playgrounds Fund 8 B -6 - Road and Bridge Fund 9 B -7 - Special Ditch Assessment Fund 9 B -8 - Debt Redemption Fund 10 Comments and Data Presented for Information and Analysis Purposes: Comments and Recommendations 11 - 12 Exhibits - No. 1 - Requirements for Debt Redemption - Street Improvement Bonds 13 No. 2 - Bond Principal, Interest and Tax Levy - Park Improvement Bonds 14 VILLAGE OF LINO LAKES ANOKA COUNTY, MINNESOTA VILLAGE COUNCIL AND ADMINISTRATIVE OFFICIALS AS OF DECEMBER 31, 1964 Alden Domning Mayor Jerome Hauer Clerk H. C. Heckenlaible 'Trustee Howard Speiser Trustee Roy Backlin Trustee Marcella Dupre Treasurer Babcock and Locher Attorneys Milner W. Carley and Associates Engineers Ronald Hausladen Justice of Peace V. Swanson Justice of Peace BONHIVER, ANFINSON. HENDRICKSON & CO. CERTIFIED PUBLIC ACCOUNTANTS 10601 OLSON MEMORIAL DRIVE MINNEAPOLIS. MINNESOTA 55427 T ONE 545 -0421 HOMER A. BONHIVER. C.P.A. DONALD D. ANFINSON. C.P.A. ORIS A. HENDRICKSON. C.P.A. THOMAS E. REARDON. C.P.A. To the Village Council and Residents Village of Lino Lakes Anoka County, Minnesota MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS We have examined the statements of cash receipts and disbursements of the funds listed below of the Village of Lino Lakes, Minnesota, for the fiscal year ended December 31, 1964: General Fund Fire Protection Fund Civil Defense Fund Gopher Control Fund Parks and Playgrounds Fund Road and Bridge Fund Special Ditch Assessment Fund Debt Redemption Fund Our examination, a limited cash audit, was made in accordance with generally accepted auditing standards, and accordingly included such tests of the account- ing records and such other auditing procedures as we considered necessary in the circumstances. The report on our examination of the funds is presented in Statements A through B -8. In addition, we have included a section for information and analysis pur- poses. It is comprised of comments and recommendations and exhibits. The ex- hibits were compiled from various data and records and were not subjected to the same procedures employed in examining the basic financial statements. They are, therefore, not covered by our opinion. In our opinion, the accompanying statements of cash receipts and disbursements present fairly the cash transactions of the Village of Lino Lakes, Anoka County, Minnesota for the year ended December 31, 1964. Certified Public Accountants Minneapolis, Minnesota October 15, 1965 s f Funds General $ 2,394.35 $17,956.35 $17,509.47 $ (500.00) $ 2,341.23 Fire Protection 1,490.79 3,041.93 3,031.52 1,501.20 Civil Defense 1,134.21 209.61 56.80 1,287.02 Gopher Control 447.18 656.52 607.25 496.45 Parks and Playgrounds 1,515.10 4,307.95 3,291.77 2,531.28 Roads and Bridges 298.49 28,185.48 18,552.69 9,931.28 Special Ditch Assessment (1) 528.93 23.96 552.89 Debt Redemption 967.63 1.043.00 458.75 500.00 2,051.88 Totals $ 8,776.68 $55,424.80 $43,508.25 $ - 0 - $20,693.23 VILLAGE OF LINO LAKES ANOKA COUNTY. MINNESOTA SUMMARY OF CASH RECEIPTS. DISBURSEMENTS AND FUND BALANCES - ALL FUNDS FOR THE YEAR ENDED DECEMBER 31. 1964 Statement A Beginning Transfers Ending Balance 1964 1964 In Balance 1 -1 -64 Receipts Disbursements (Out) 12 -31 -64 NOTE 1 - On October 10, 1959, the Village of Lino Lakes was assessed $3,500.00 for its share of the cost of Judicial Ditch No. 3. The amount was disputed and has not been settled to date. However, the village levied for the anticipated liability and has received the following tax receipts through December 31, 1964: Year Received Fund Credited Amount 1961 Special Ditch Assessment $ 528.93 1962 Road and Bridge Fund 549.35 1963 Road and Bridge Fund 326.30 1964 Special Ditch Assessment 23.96 Total Tax Receipts $.1,428.54 See Comment No. 1 for recommended transfer. Mow Statement B -1 VILLAGE OF LINO LAKES ANOKA COUNTY, MINNESOTA STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS - GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 1964 Actual RECEIPTS Better or Budget (Worse) than Amount Budget (Cents Omitted) General Property Taxes: Current $ 5,356.78 $ 5,505 $ (148) Licenses and Permits: Liquor license $ 975.00 200 7.75 Beer license 1,171.50 1,000 172 Cigarettes 61.00 150 (89) Dance license 100.00 100 Building permits 699.00 300 399 Special use permits 15.00 40 (25) Dog license 293.00 60 233 Total Licenses and Permits 3,314.50 Fines: Justice court (Net after costs) 938.00 300 638 Revenue from Other Agencies: Liquor Apportionment Cigarette Apportionment Mortgage registration Mobile homes Total Revenue from Other Agencies Charges for Current Services: Rezoning fees Miscellaneous - sale of code books Rental income Total Charges for Current Services $ 2,771.51 4,192.20 5.00 873.07 $ 40.00 210.00 7,841.78 250.00 2,500 4,000 550 271 192 5 323 320 (280) 10 (10) 15 195 Other Revenue: Miscellaneous receipts 255.29 255 TOTAL CASH RECEIPTS - GENERAL FUND $17,956.35 $14,950 $ 3,006 4 Mayor and Council: Salaries Labor Telephone and postage Printing Heat Council supplies General supplies Rent Insurance Memberships and dues Equipment Total Mayor and Council Justice Court: Statement B -1 Continued DISBURSEMENTS Better or Budget (Worse) than Actual Amount Budget (cents omitted) $ 1,250.00 587.77 83.72 58.50 509.59 305.84 387.65 1,185.00 603.88 554.50 163.15 Supplies $ 3.60 Insurance and bond 30.00 Total Justice Court Election and Voter's Registration: Salaries - judges and clerks Printing and publishing Total Election and Voter's Registration $ 570.07 Clerk: Salaries Office supplies Insurance and bonds Miscellaneous Total Clerk Treasurer• Salary. Insurance and bond Supplies Total Treasurer $ 600.00 128.91 10.00 .95 $ 300.00 140.00 Assessor: Salary $ 1,200.00 Insurance and bond 5.00 Total Assessor $ 5,689.60 33.60 570.07 739.86 440.00 1,205.00 $ 1,850 $ 600 (589) (84) 75 17 (509) 10 (296) (388) 1,440 255 600 (4) 150 (404) (163) 15 30 400 50 600 100 300 140 10 11 (170) 50 10 1,200 10 5 DISBURSEMENTS - Continued Independent Accounting and Auditing: Services $ 1,055.96 $ 560 $ (496) Legal: Services $ 1,824.88 1,000 (825) Printing and publishing 337.95 250 (88) Total Legal 2,162.83 Planning and Zoning: Engineering service $ 1,509.00 875 (634) Travel expense 25 25 Miscellaneous 600 600 District #2 300 300 Total Planning and Zoning 1,509.00 Police: Salaries $ 1,680.00 1,800 120 Telephone and postage 25 25 Travel 150 150 Maintenance and repairs - equip. contractual 191.55 150 (41) Motor fuel and lubricants 10,28 405 395. Clothing allowance 120.00 120 General supplies - radio service 350.04 50 (300) Insurance and bond 18.50 25 6 Machinery and automotive equipment 445 445 Total Police Statement B -1 Continued Better or Budget '(Worse) than Actual Amount Budget (cents omitted) 2,370.37 Protective Inspection: Building inspector salary $ 561.81 200 (362) Travel 6.45 25 19 Insurance and bonds 10.00 40 30 Total Protective Inspection 578.26 Weed Inspection: Salaries $ 102.81 350 247 Travel 75.01 50 (25) Other contractual service 50 50 Supplies 516.75 200 (317) Insurance and bond 10.00 (10) Total Weed Inspection 704.57 Animal Control: Other contractual services dog catcher Supplies Total Animal Control Miscellaneous - License collected for State Total General Fund Cash Disbursements Transfers Out: Debt Redemption Total Disbursements and Transfers 305.35 - 6 - 250 (100) 25 25 350.35 100.00 (100) $17,509.47 $14,950 $ (2,560? 500.00 $18,009.47 Statement B -2 VILLAGE OF LINO LAKES ANOKA COUNTY, MINNESOTA STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS - FIRE PROTECTION FUND FOR THE YEAR ENDED DECEMBER 31, 1964 Receipts: General Property Taxes Actual $ 3,041.93 Disbursements: Fire marshall salary $ 120.00 Travel 51.52 Other contractual service - fire control 2,800.00 Printing Clothing allowance 60.00 Total Disbursement - Fire Protection Fund $. 3,031.52 Better or Budget (Worse) than Amount Budget (cents omitted) $ 3,060 $ (18) $ 160 30 2,800 10 60 40 (22) 10 1_212E 1 28 Statement B -3 STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS - CIVIL DEFENSE FUND ,Receipts: General Property Taxes Disbursements: Office supplies General supplies Miscellaneous Membership and dues Total Disbursement - Civil Defense Fund $ 209.61 $ 51,80 5.00 $ 56.80 $ 200 $ 10 $ 10 $ 90 85 15 10 38 80 15 $ 200 $ 143 Statement B -4 STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS - GOPHER CONTROL FUND Receipts: General Property Taxes $ 445.72 Gopher bounties received 210.80 Total Receipts - Gopher Control Fund $ 656.52 Disbursements: Equipment Other contractual service - Gopher bounties $ 607.25 Total Disbursements - Gopher Control Fund $ 607.25 $ 450 $ (5) 300 (88) 750 $ 03) $ 250 $ 250 500 (107) $ 750 143 Statement B -5 VILLAGE OF LINO LAKES ANOKA COUNTY. MINNESOTA STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS - PARKS AND PLAYGROUNDS FUND FOR THE YEAR ENDED DECEMBER 31. 1964 Receipts: General Property taxes Actual Better or Budget (Worse) than Amount Budget (cents omitted) $ 4,307.95 $ 4,675 $ (367) Disbursements: Building improvements and maintenance $ 676.11 $ 400 $ (276) Engineer's service 200 200 Other contractual service 232.50 500 267 Power purchases 186.09 200 14 Equipment purchases 68.80 175 106 Miscellaneous 1,500 1,500 General supplies 569.27 100 (469) Land and survey - Lakeview Park 1,559.00 1.600 41 Total Cash Disbursements - Parks and Playgrounds Fund $ 3,291.77 $ 4,675 $ 1,383 Statement B -6 VILLAGE OF LINO LAKES ANOKA COUNTY, MINNESOTA STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS - ROAD AND BRIDGE FUND FOR THE YEAR ENDED DECEMBER 31, 1964 Receipts: General Property Taxes Sale of bonds Miscellaneous - use of truck Total Cash Receipts - Road and Bridge Fund Disbursements: Street and Alley - Salaries - full and part time Engineer's service Other contractual services Maintenance and repairs of streets and alleys - commodities General supplies Total Street and Alley Snow and Ice Removal - Salaries Other contractual service Total Snow and Ice Removal Equipment Maintenance Shop - Maintenance and repair - equipment Tools Motor fuel and lubricants General supplies Traffic signs, etc. Total Equipment Maintenance Shop Street Lighting, - Power purchases Total Disbursements Better or Budget (Worse) than Actual Amount Budget (cents omitted) $22,005.93 $22,400 $ (394) 6,000.00 6,000 179.55 179 $28,185.48 $22,400 $ 5,785 $ 1,771.71 17.50 8,435.92 4,436.13 730.29 $15,391.55 $16,500 $ $ 272.37 283.35 $ 620.17 36_67 864.27 56.39 203.50 555.72 2,400 1,781.00 2,000 1,108 1,844 219 824.42 1,500 676 $18 552.69 $22 400 $ 3 -847 Statement B -7 STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS - SPECIAL DITCH ASSESSMENT FUND Receipts: General Property Taxes Disbursements: Principal and interest 9 $ 23 :96 $ -0- $ -0- $ 0 $ -0- 24 Statement B -8 VILLAGE OF LINO LAKES ANOKA COUNTY, MINNESOTA STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS - DEBT REDEMPTION FUND FOR THE YEAR ENDED DECEMBER 31, 1964 Balance - January 1, 1964 Receipts - Special Assessments Transfer In - General Fund Street Street Park Improvement #1 Improvement #2 Improvement Total $ 967.63 1,043.00 Total Receipts, Transfers and Beginning Balance $ 2,010.63 500.00 $ 967.63 1,043.00 500.00 $ 500.00 $ 2,510.63 Disbursements Principal Interest 30.00 $ 210.00 218.75 458.75 Balance - December 31, 1964 $ 1,980.63 $ (210.00) $ 281.25 $ 2,051.88 Bond principal and interest on Street Improvement Bond #1 due January 1, 1965, was paid January 20, 1965. There were no collections on the special assessments for Street Improvement Bonds #2. The special assessment was not placed until October 1964, with collections due in 1965. The bond levy for the Park Improvement Bonds was placed a year late and no collec- tions will be received until 1965. A transfer of $500 was made from the General Fund to meet the interest obligation on this bond issue. L Ca tarn NM BATA M wit I IR ON 1 i. (Not subjected to complete audit procedures) COMMENTS AND RECOMMENDATIONS Condition of the records was very poor again this year. In addition, none of our previous year's recommendations for transfers were carried out. The transfers and ad- justments are necessary to bring the records to a current status and cover several years. Consequently, the same conditions prevail this year as in the past. The following comments, included in last year's report, are applicable to the current year also: A. Deposits were not made promptly due to the procedure followed whereby the clerk accumulates receipts, turns it over to the treasurer who makes the deposit. Cash should not be allowed to accumulate. We urge that deposits be made with- out delay unless minor amounts are involved. B. We were unable to reconcile monies received from the sale of licenses to bank deposits, due to the lack of information on the receipts and the time that elapsed before making the deposit. A recommendation to aid in correcting this and to avoid additional audit procedures is to include the license number on the receipt. C. The records were not complete or in a condition to begin the audit function. As a result it was necessary to perform certain routine bookkeeping duties, such as totalling and balancing the clerk's records, reconciling the records to the bank balance for the year and determining account names not inserted, etc. This added to the time required by us and required extension of audit- ing procedures to fully satisfy ourselves of the reliability of the records. We Urge that more consideration and time be devoted to maintain the basic and necessary accounting records. Present financial problems of the village are partially attributable to the lack of the above procedures. The $1,559.32 of December monies turned over to the village in March by the previous clerk would not have occurred if proper deposit procedures were followed. In addition, void checks were recorded in the records, deposits were made with no receipts issued, receipts were prepared but the deposit could not be traced to the bank, and receipts were prepared and the deposit made but no entry made in the books. If the records had been maintained currently and the bank properly reconciled, these errors would have been uncovered by the village for immediate correction. The above problems and errors have not precluded us from rendering an opinion that the cash receipts and disbursements are reasonably reflected for the year 1964 when taken as a whole, particularly in conjunction with the March, 1965 deposit ($1,559.32) of 1964 receipts. However, we do not intend to imply that additional errors or omissions may not yet exist or come to light in the future. low Imo Imo Based on observations made during the course of the audit, we submit the following comments and recommendations: 1. Transfers that should have been made during the year are: A. Road and Bridge Fund Special Ditch Assessment Fund To transfer funds received in 1962 and 1963 for Judicial Ditch #3 to Special Ditch Assessment Fund pro- vided for that purpose. B. Debt Redemption Fund Road and Bridge Fund To reimburse the Road and Bridge Fund for interest and principal paid in 1957. C. Road and Bridge Fund Debt Redemption Fund To repay the temporary transfer of 1963. From $ 875.65 800.00 3,000.00 $ 875.65 800.00 3,000.00 In addition to the above transfers, there were several adjustments necessary to bring the clerk's and treasurer's records into agreement with the audit report. These ad- justments stem from recording errors and omissions in 1962 and 1963. Because of the difficulty of reflecting these adjustments, plus the ones occurring in the current year, we recommend that the clerk and treasurer commence 1965 with the balances reflected in this report. 2. When the transfers B and Cof Comment No. 1 are made, Street Improvement Bond #1 will have a cash balance of $4,180.63 and a total debt retirement of $1,590.00. This build -up is the result of the payment of the improvement cost in excess of the bond proceeds out of the Road and Bridge Fund as indicated in Comment No. 8 of last year. A transfer can be made to repay the Road and Bridge Fund for this excess cost, provided the transfer does not exceed that amount which would have been received to retire the bonds in accordance with legal requirements. 3. The village opened a second checking account at the First State Bank of Coon Rapids during the year under review. Because of the difficulties usually en- countered when more than one checking account is maintained, we recommend that one be closed. 4. The disbursement for bond interest made out of the First State Bank of Coon Rapids account was by a charge memo. This practice should be discontinued. All disbursements should be by village checks. 5. Our analysis of Justice of the Peace receipts for fines imposed, indicates that the village is receiving net amounts. Gross amounts should always be remitted to the village and checks issued for costs. 1964 1965 1966 1967 1968 1969 1970 1971 VILLAGE OF LINO LAKES ANOKA COUNTY. MINNESOTA REQUIREMENT FOR DEBT REDEMPTION, PRINCIPAL AND INTEREST Street Improvement Bonds Street Improvement #1 $5,000.00 4% Interest Dated 7 -1 -1956 Interest due Principal 1 -1 7 -1 $ 500.00 $ 500.00 500.00 30.00 40.00 20.00 (Special Assessment Bonds) Street Improvement #2 $6,000.00 344% Interest Dated 12 -1 -1963 Interest due Principal 6 -1 12 -1 $ 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1.000.00 210.00 210.00 175.00 140.00 105.00 70.00 35.00 Exhibit 1 Total 530.00 750.00 1,730.00 1,175.00 1,140.00 1,105,00 1,070.00 1.035.00 $ 1,500.00 $ 90.00 $ 6t000.00 945.00 1..!,22142 Street Improvement #1 Payable at First State Bank, New Brighton, Minnesota, plus service charges. Bonds due after January 1, 1964, will be subject to redemption in inverse numerical order on January 1, 1959, and any interest payment date thereafter at par, accrued interest and a premium of $20.00 for each bond redeemed. Bond principal and interest due January 1, 1965, was paid January 20, 1965. Street Improvement #2 Payable at the First State Bank, New Brighton, Minnesota, plus service charges. All bonds maturing after December 1, 1966, will be subject to redemption and prior payment in inverse numerical order on December 1, 1966, and any interest payments date thereafter, at par, accrued interest, and premium of $20.00 for each bond redeemed. The proceeds from the sale of these bonds were received January 14, 1964. - 13 - 7 -1 -64 1 -1 -65 7 -1 -65 1 -1 -66 7 -1 -66 1-1-67 7 -1 -67 1 -1 -68 7 -1 -68 1 -1 -69 Exhibit 2 VILLAGE OF LINO LAKES ANOKA COUNTY, MINNESOTA Park Improvement Bonds - Dated April 1, 1964 $5,000.00 - 342 % Interest Principal Interest Total Levy $ 1,000.00 $ 87.50 $ 1,087.50 70.00 70.00 1,000.00 70.00 1,070.00 52.50 52.50 1,000.00 52.50 1,052.50 35.00 35.00 1,000.00 35.00 1,035.00 17.50 17.50 1,000.00 17.50 1,017.50 $ 1,375.00 1,200.00 1,200.00 1,150.00 1,150.00 $ 5,000.00 $ 437.50 $ 5,437.50 1 6,075.00 Payable at First State Bank of Coon Rapids, Coon Rapids, Minnesota plus service charges. The levy that should have been placed in 1964 was omitted; therefore, collections will be received subsequent to maturities. This will be true throughout the entire issue unless additional levies are placed to provide a balance and have collections match maturity dates.