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CRT OF <br />111706 <br />W <br />REQUEST FOR COUNCIL CONSIDERATION <br />STAFF REPORT <br />AGENDA SESSION DATE June..6, 1995 <br />Agenda Section: 191 <br />Report Number: 95-1 377WS <br />Report Date: 6-1-95 <br />DISPOSITION <br />Item Description: <br />1994 City Audit Presentations <br />Administrator's Review/Recommendation: <br />- No comments to supplement this repor <br />- Comments attached. <br />Explanation/Summary (attach supplement <br />SUMMARY; <br />necessary.) <br />The auditors, in their Management Letter, have recommended that a deficit which exists in the M.S.A. <br />Project Fund be cleared up. Public Works Director Mike Ulrich, Steve Campbell of SEH, and I have <br />been working on this, as time permitted. During 1989, 1990, and 1991 additional monies could be <br />received, on request, for maintenance of M.S.A. streets. Mn DOT would send 90% of the amount <br />requested; the remaining 10% would be sent after the City filed a report substantiating the expenditures. <br />Contact with Mn DOT revealed that then Public Works Director Minetor had not filed such reports. <br />Public Works Director Ulrich reviewed financial records for 1989, 1990, and 1991 and determined that <br />there had not been sufficient maintenance expenditures on M.S.A. streets to justify the amounts of <br />maintenance monies requested for those years. Mn DOT informed us that, due to an error in their <br />computer program, the City of Mounds View was paid the full amount of maintenance monies requested <br />for 1989, 1990, and 1991. As a consequence, the City was overpaid $104,114.03. The year and the <br />amount of the overpayment is listed below. <br />M.S.A. Maintenance Overpayments <br />1989 <br />1990 <br />1991 <br />Total <br />$19,244.40 <br />$46,149.94 <br />$38,719.69 <br />$104,114.03 <br />In addition an overpayment of $22,536.20 was made on construction of Quincy Street from County Road <br />H2 to Highway 10. On this project an engineer's estimate of the cost of the project was submitted and <br />Mn DOT paid 95% of the estimate. Upon completion of the project the City would usually request the <br />remaining 5%. In this case final costs were $22,536.30 under 95% of the engineer's estimate. <br />The total amount of the overpayments is $126,650.33. Mn DOT has applied some of the overpayments <br />to requests for reimbursements on construction projects and will continue to apply the overpayment to <br />ji.EC siggisitti,Al. the overpayment is repaid. <br />Since the overpayment of the maintenance allowances was deposited in the General Fund, our auditors <br />have transferred $104,114.03 from the General Fund to the MSA Project Fund to make up for the <br />