C. Review of 2008 Audit
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 952 227.11 90
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
Prlone 952.227.1130
Fax 952.227.1110
Public Works
~: 591 Park Road
Phone 952.227.1300
Fax 952.227.1310
Senior Center
Phone 952.227.1125
Fax 952.227.1110
Web Site
WIVINC; .chanhassen. mn. us
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MEMORANDUM
TO: Mayor
City Council Members
FROM:
Greg Sticha, Finance Director
&
DATE:
June 22, 2009
SUBJ:
Review of 2008 Audit
The Finance Department just finished another audit cycle. Andy Herring from
HLB Tautges Redpath will be present to review the financial results and audit
findings of the 2008 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 2008, the General Fund had revenues in excess of expenditures of $187,269.
This surplus was the result two things: under-spending the total general fund
expenditure budget by $72,000 (or by .8%) and receiving $79,000 in Market
Value Homestead Credit that was not budgeted for in 2008.
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 2008.
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.
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Review of 2008 Audit
June 22, 2009
Page 2 of2
The third report is titled, "Communication With Those Charged With
Governance." 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. Herring will explain this information and be happy to respond to your
questions on Monday.