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32 <br /> Honorable Mayor and Members of the City Council <br /> City of St. Anthony, Minnesota <br /> Government Accounting Standards Board (GASB) Statement No. 34 <br /> 'Implementation dates of this Statement are as follows: <br /> Total Revenues for Year Ending <br /> Phase FYE 12/31/99 December 31, <br /> --------- --------------------------- ------------ <br /> 1 Greater than $100 Million 2002 <br /> 2 $10 Million to $100 Million 2003 <br /> 3 Less than $10 million 2004 <br /> Earlier implementation of this Statement is encouraged but not required. Most <br /> governments will delay implementation of this Statement due to the significant <br /> time and effort that will be required to comply with this Statement, and allow time <br /> for further guidance on implementation from GASB. However, the suggestion is that <br /> the City begin planning now for these significant changes. I will keep the City <br /> informed as further guidance and recommendations for implementation are issued <br /> and to assist the City in making this transition smoothly. <br /> Other Matters <br /> .Project Reimbursements <br /> During the year, the City incurred significant costs related to projects eligible <br /> for reimbursement from the State. At December 31, 2000, it was noted the appli- <br /> cation process for reimbursement had not yet been commenced. During the audit, <br /> this situation was discussed with the finance director who instructed the City <br /> engineers to request reimbursement of these project costs. <br /> Liquor Profitability <br /> Although, income from liquor operations for the year was favorable; it was noted <br /> based on a review of revenues and expenses and internal management reports, the <br /> profitability of the City's on-sale operation decreased significantly when compared <br /> to the prior year. This operation should be monitored closely and steps imple- <br /> mented in an attempt to increase income from this portion of the liquor operation. <br /> Financial Records <br /> During the audit it was noted checks were occasionally used out of sequence. This <br /> practice should be monitored closely to ensure all checks are properly used and <br /> accounted for. In instances when checks are prepared manually, perhaps a separate <br /> sequence of checks may be used for this purpose. <br /> In addition, purchase orders are not consistently used by all departments. Perhaps <br /> a formal policy can be instituted for use by all departments or the present system <br /> discontinued. <br />