CC PACKET 05241994 - Laserfiche WebLink

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Members of the City Council City of St. Anthony, Minnesota Other Matters, continued Assessments - It was noted that the assessment levied on two properties were not properly certified and recorded by the County. Based upon discussions with manage- ment, this situation was subsequently corrected in 1994. In addition, assessment rolls should be updated periodically to reflect prepayments received by the City and provide for the reconciliation of the balance of assessment levies. Accrued Compensated Absences - A transfer of $17,625 to the Employee Benefit Fund from the General Fund was made during the year to fully fund the liability for accrued compensated absences as of December 31 , 1993. This liability increased approximately $19,000 from December 31 , 1992. Efforts to insure compliance with requirements of the City's severance policy and avoid the potential of individuals losing a portion of their accrued benefit need to be monitored constantly. The payroll system provides individuals with current information concerning the accrual of these benefits, which will help achieve compliance. Storm Water Charges - A new fund was established in 1993 to provide appropriate accountability of these funds. Financial Condition For the year ended December 31 , 1993, revenues and other sources exceeded expen- ditures and other uses by $18,268. This increase occurred despite the large un- favorable variance from general property taxes as previously noted. The fund balance of the General Fund totaled $818,934, of which $531 ,548 has been designated for working capital. This represents approximately 22.30% of budgeted expenditures for 1994. Council and staff should be complimented on the action implemented throughout the year to insure the financial stability of -the City. This working capital reserve provides needed working capital to finance current operations until tax settlements and state aids are received. This reserve also serves as .a safe- guard against potential revenue shortages or unexpected expenditures. Council and mangement must continue to closely monitor its financial position throughout the year to maintain or preserve this current level of stability. By monitoring its financial position Council will be in a position to react to financial changes. This report is intended solely for the information and use of the City Council , management and others within the organization. If the Council wishes, I would be pleased to meet and discuss any of the observa- tions, comments, or recommendations mentioned or other matters pertaining to the audit with the Council or management at your convenience. If the City desires, I am available to assist with the implementation of any of the recommendations. I wish to express my appreciation for the courtesies and cooperation extended by the Interim City Manager, Finance Director and City personnel during the engagement. Stuart J. Bonniwell Certified Public Accountant