CC MINUTES 08272013 - Laserfiche WebLink

Home Browse Search

City Council Regular Meeting Minutes June 25, 2013 Page 6 1 City Engineer Hubmer stated there is a two-year warranty on trees and replacement trees will be 2 planted this fall. He added that information regarding replacement trees was included in a 3 newsletter to residents. 4 5 Mayor Faust requested an update regarding measures taken last summer at Mirror Lake. 6 7 City Engineer Hubmer stated that staff has been working with Rice Creek Watershed District and 8 the City of New Brighton on a petition to Rice Creek Watershed District requesting an 9 evaluation of flood proofing options and this item will be presented to the City Council in July. 10 11 E. 2012 Audit Presentation. Peggy Moeller, HLB Taut eg s Redpath, presenting. 12 13 Ms. Moeller presented the 2012 audit results, including the Comprehensive Annual Financial 14 Report (CAFR), State Legal Compliance Report, Report on Internal Controls, Audit 15 Management Report, and Communication with Those Charged with Governance. She pointed 16 out the financial statements are the responsibility of management and the role of the auditor is to 17 report on the fair presentation of the financial statements. She stated the City once again 18 received a clean or unmodified opinion during the 2012 audit. She advised the State Legal 19 Compliance Report is required by statute and includes testing based on a checklist of seven 20 categories and no findings were issued this year. She stated the auditors do not audit internal 21 controls but are considered as a basis for designing the audit procedures and three findings were 22 noted in the Report on Internal Controls. She stated the Management Letter shows the General 23 Fund balance increased $272,500 in 2012 and the total fund balance of $1,975,337 consists of 24 $68,481 in non -spendable funds and $1,906,856 in unassigned funds. She advised the City has a 25 minimum fund balance policy of 30-35% and the City's fund balance at December 31, 2012, was 26 40.75%. She noted the City has four funds with a negative fund balance and these funds are 27 currently borrowing from other funds, noting the Internal Service Fund holds a long-term 28 liability that the City likely would not have to pay all at once. She reviewed the Water and 29 Sewer Enterprise Fund stating that water operations had 2012 net operating income of $88,626 30 and sewer operations had a loss in 2012 of $130,758. She also reviewed the Liquor Fund stating 31 that 2012 net income before transfers was $529,273 and the City's operating expenses compare 32 favorably to similar liquor operations. She indicated the HRA Fund ending balance was 33 $1,149,187. She advised there were no difficulties encountered in performing the audit and there 34 were no disagreements with management. 35 36 Councilmember Stille requested further information regarding the audit findings. 37 38 Ms. Moeller stated the finding regarding delegation of duties is a result of the small number of 39 City staff and cannot be eliminated. She stated the other findings related to audit adjustments are 40 typically the most common finding given by auditors because government accounting is so 41 complex. She stated the third finding was a software issue with the finance department 42 conversion that has been resolved following City staff's notification to the vendor. 43 44 Councilmember Gray expressed concern regarding the software issue and stated this represented 45 a significant amount of money that was not brought to the City's attention by the vendor. 46