A-2. 2007 Audit Review
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
A
MEMORANDUM
TO:
Mayor
City Council Members
~ttt,
FROM:
Greg Sticha, Finance Director
June 23, 2008 ~.
Review of 2007 Audit
DATE:
SUBJ:
The Finance Department just finished another audit cycle. Dave Mol and Andy
Herring from HLB Tautges Redpath will be present to review the financial results
and audit findings of the 2007 audit.
BACKGROUND
The statements are once again presented with information that takes into account
the city's entire financial picture in a format similar to a proprietary or a for-profit
organization, including a statement of activities which breaks out the primary
government and proprietary revenues and expenses by function type.
For 2007, the General Fund had revenues in excess of expenditures of $944,736.
This surplus was the result of a few revenue items exceeding budget in 2007,
including receiving our Market Value Homestead Credit from the state
($162,000) which was not budgeted, building permits ($130,000), and investment
income ($70,000). We also had a one-time revenue generation from taking some
SAC credits related to the demolition of the Lakeview Hills Apartment complex
($100,000). In addition, various city departments under- spent their budgets by
$267,000. The remaining increase was from a number of smaller revenue items
that exceeded budget in 2007.
The presentation by HLB Tautges Redpath will also include a review of the City's
enterprise operations. We will discuss this item at the work session.
AUDIT FINDINGS
There are three reports that HLB Tautges Redpath completes for the City. The
first is the Independent Auditor's Report on Compliance with Minnesota Legal
Compliance Guide for Local Government. This report is submitted to the Office
of the State Auditor along with the annual report. There were no findings in this
report for 2007.
The City of Chanhassen · A growing community with clean lakes, quality schools, a chamning downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
Review of 2007 Audit
June 23, 2008
Page 2 of2
The second report is the Independent Auditor's Report on Compliance and on
Internal Control over Financial Reporting. This report lists conditions that could
affect our ability to properly record and report transactions. These conditions do
not rise to the level of a material weakness in our controls, but should be corrected
to help ensure that procedures are properly followed. There were two items noted
in this report. We will discuss each of these items at the work session as well as
give council an update on how they already have been or will be resolved.
The third report is the audit management letter. This is a longer description of
summary information that highlights comparisons and trends for financial results.
This also reviews city policies, procedures and systems, and outside factors that
may affect the city's financial operations. This is something that HLB Tautges
Redpath does outside of the scope of audit requirements. There were no
substantial or material findings in this report.
The audit and supporting documentation will be distributed at the work session.
Mr. Mol and Mr. Herring will explain this information and will be happy to
respond to your questions on Monday.