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HomeMy WebLinkAboutPresentation - 2024 AuditCity of Lake Elmo, Minnesota Presentation of the Annual Comprehensive Financial Report Fiscal Year Ended December 31, 2024 Audit Process and Opinion Unmodified (Clean) Opinion General Procedures Obtain Records Inquiries Analytical Procedures Sampling Detail Testing Required Communications Audit went smoothly Positive Working Relationship with Management Nothing unusual noted in terms of recorded transactions or accounting policies/treatments Significant estimates for -Net Pension Liability/Balances -Net OPEB Liability/Balances Controls and Compliance AUDIT ADJUSTMENTS INTERNAL CONTROLS MINNESOTA LEGAL COMPLIANCE •No material audit corrections necessary •Lack of segregation of duties identified for certain accounting functions •No instances of noncompliance were identified Revenues exceeded budget by $1,007,512 Expenditures were below budget by $377,766 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2020 2021 2022 2023 2024 2024 Budget General Fund - Trend Analysis & Budgetary Comparison Revenues Expenditures Fund Balance 2023 2024 2024 Budget Revenues 8,047,855$ 9,146,762$ 8,139,250$ Expenditures 6,225,612 6,837,487 7,215,253 Other Uses (441,902) (905,283) (967,328) Change in Fund Balance 1,380,341 1,403,992 (43,331) Fund Balance 8,920,580$ 10,324,572$ N/A Detailed Revenue AnalysisGeneral Fund Taxes & Assessments Licenses, Permits and Fees Inter- governmental Charges for Services Fines Investment Gains/Losses Miscell. 2023 $5,211,418 $1,148,190 $386,492 $798,787 $45,402 $345,953 $111,613 2024 Final Budget $6,063,212 $933,580 $233,343 $772,615 $30,000 $80,000 $26,500 2024 $6,064,623 $1,020,801 $500,860 $912,893 $55,286 $444,440 $147,859 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 Detailed Expenditure AnalysisGeneral Fund General Government Public Safety Public Works Culture and Recreation Capital Outlay 2023 $1,213,697 $3,037,244 $1,284,334 $409,753 $280,584 2024 Final Budget $1,528,465 $4,013,352 $1,084,959 $486,977 $101,500 2024 $1,437,156 $3,749,563 $1,069,092 $492,788 $88,888 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 Fund balance policy sets a target floor/minimum fund balance equal to approximately 50% to 60% of the following year’s budgeted operating expenditures 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 2020 2021 2022 2023 2024 Unassigned Fund Balance as a Percentage of Next Year's Budget Year Percentage 2020 102.6% 2021 97.3% 2022 103.9% 2023 109.0% 2024 129.8% Cash Trend AnalysisGeneral Fund 2020 2021 2022 2023 2024 General $7,052,419 $9,577,831 $10,744,465 $12,190,097 $12,115,282 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 Financial Highlights Other Governmental Funds *Financial data for individual nonmajor governmental funds can be found beginning on page 90 in the Annual Comprehensive Financial Report. - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 Debt Service Fund Capital Projects Funds Revenues Expenditures Other Sources/Transfers Debt Service Fund Capital Projects Fund Revenues 4,187,861$ 3,273,248$ Expenditures 3,628,441 7,165,501 Other Sources/Transfers 92,061 5,535,588 Change in Fund Balance 651,481 1,643,335 Fund Balance 5,678,193$ 8,338,201$ Cash Trend Analysis Other Governmental Funds 2020 2021 2022 2023 2024 Debt Service $4,573,126 $3,886,866 $4,532,084 $5,011,444 $5,657,531 Capital Projects $4,065,170 $21,630,450 $14,633,366 $7,792,520 $10,719,099 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 Historical TrendsWater Fund $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2020 2021 2022 2023 2024 Operating Revenues Operating Expenses 2020 2021 2022 2023 2024 Operating Revenues 1,239,404$ 1,711,596$ 1,761,364$ 1,932,608$ 1,517,017$ Operating Expenses 2,138,417 2,442,438 2,934,238 3,629,498 3,607,825 Operating Income (899,013) (730,842) (1,172,874) (1,696,890) (2,090,808) Nonoperating Revenues & Transfers In 9,095,584 11,138,056 11,221,712 5,892,999 8,473,757 Nonoperating Expenses & Transfers Out (244,835) (3,984,842) (3,674,626) (352,740) (339,124) Change In Net Position 7,951,736$ 6,422,372$ 6,374,212$ 3,843,369$ 6,043,825$ Historical TrendsSewer Fund $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2020 2021 2022 2023 2024 Operating Revenues Operating Expenses 2020 2021 2022 2023 2024 Operating Revenues 432,583$ 549,567$ 671,474$ 760,781$ 869,151$ Operating Expenses 1,316,381 1,417,524 1,764,912 2,167,556 2,666,804 Operating Income (Loss)(883,798) (867,957) (1,093,438) (1,406,775) (1,797,653) Nonoperating Revenues & Transfers In 4,545,116 5,618,245 4,351,815 4,069,814 5,537,548 Nonoperating Expenses & Transfers Out (165,205) (1,652,819) (445,812) (356,724) (329,701) Change In Net Position 3,496,113$ 3,097,469$ 2,812,565$ 2,306,315$ 3,410,194$ Historical Trends Storm Sewer Fund $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2020 2021 2022 2023 2024 Operating Revenues Operating Expenses 2020 2021 2022 2023 2024 Operating Revenues 369,689$ 512,624$ 510,061$ 580,896$ 657,030$ Operating Expenses 699,162 780,685 907,794 1,016,549 1,149,143 Operating Income (329,473) (268,061) (397,733) (435,653) (492,113) Nonoperating Revenues & Transfers In 2,304,204 1,605,697 2,028,444 2,484,344 4,071,803 Nonoperating Expenses & Transfers Out (54,015) (51,397) (60,428) (40,562) (35,921) Change In Net Position 1,920,716$ 1,286,239$ 1,570,283$ 2,008,129$ 3,543,769$ Cash Trend AnalysisProprietary Funds - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 2020 2021 2022 2023 2024 Sewer Utility Water Utility Storm Sewer Utility Government-Wide Assets 0 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Current Assets 38,757,846 60,427,247 59,851,619 54,215,682 57,400,413 Capital/Noncurrent 110,633,721 130,229,184 164,134,162 189,217,728 217,115,357 Government-Wide Liabilities 0 20,000,000 40,000,000 60,000,000 80,000,000 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Current Liabilities 9,268,265 10,354,210 13,345,224 12,467,950 11,905,606 Debt/Noncurrent 32,557,372 48,079,513 56,401,284 57,051,117 56,556,942 Net Pension Liability 1,466,456 989,994 2,951,458 1,606,836 1,444,241 Government-Wide Assets & Liabilities 0 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 2020 2021 2022 2023 2024 Assets vs Liabilities - Trend Analysis Total Assets Total Liabilities Net (Assets - Liabilities) Governmental FundsFuture Debt Payments - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 Governmental Funds Future Debt Payments Principal Payments Interest Payments Proprietary FundsFuture Debt Payments - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Proprietary Funds Future Debt Payments Principal Payments Interest Payments Questions? Ryan Schmidt, CPA Partner rschmidt@schlennerwenner.cpa 320-251-0286