HomeMy WebLinkAbout#13- Audit and CAFRSTAFF REPORT
DATE: August 8, 2018
REGULAR #13
TO: City Council
FROM: Sue Iverson – Finance Director
AGENDA ITEM: Presentation & Acceptance of the 2017 Comprehensive Annual Financial
Report (CAFR)
REVIEWED BY: Kristina Handt, City Administrator
BACKGROUND:
Annually, the City engages the services of an independent outside audit firm to audit and assist with the
preparation of the financial statements. The auditors are asked to assure that the financial statements are
free from material misstatement in accordance with U.S. Generally Accepted Accounting Principles
(GAAP). The firm also performs testing and makes inquiries to help ensure that proper internal controls
are in place. This is the fifth year that the City of Lake Elmo has presented the report in the Comprehensive
Annual Financial Report (CAFR) layout.
As such, the City has retained the services of Smith Schafer & Associates, Ltd., to perform the City of Lake
Elmo’s audit for 2017. The 2017 Comprehensive Annual Financial Report and Management Report will
be presented to the City Council by Mr. Jason Miller – Principal, from Smith Schafer and Associates, Ltd.
with the opportunity to ask questions of both Mr. Miller and City Staff.
An overview summary of the 2017 CAFR and results were presented to the Finance Committee on July 17,
2017. Copies of the report were provided to the Finance Committee and it was unanimously agreed to
recommend that the report be presented to the City Council.
ISSUE BEFORE THE CITY COUNCIL:
1) Does the City Council have any questions regarding the 2017 CAFR?
DISCUSSION:
Mr. Jason Miller – Principal, from Smith Schafer and Associates, Ltd., will present information regarding
the 2017 Audit, answer any questions the City Council may have, with staff also present to answer any
questions pertaining to the 2017 Audit and the 2017 CAFR.
The City received an Unmodified audit opinion, meaning the Financial Statements are fairly stated in all
material respects. No exceptions were noted during the audit for Minnesota Legal Compliance. The City’s
Net Position increased by $4,347,094 during 2017, this includes assets and infrastructure less outstanding
debt obligations. The governmental funds reported a combined ending fund balances of $8,259,817 which
is an increase of $36,063 from 2016. The unassigned general fund balance of $3,499,133 is 81% of 2017
expenditures.
FISCAL IMPACT:
Overall sound policies, fiscal management, effective operational, capital, and long range planning are all
integral parts of City business leading up to the audit and completion of the CAFR. As such, continued
investment in the aforementioned items will help position the City to continue to provide quality, efficient,
timely and cost effective services to the constituents of the community.
RECOMMENDATION:
1) No formal recommendation is required, but the City Council at its discretion may accept the results
of the 2017 Audit and 2017 CAFR.
ATTACHMENTS:
1) 2017 Comprehensive Annual Financial Report