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A. 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: 952.227.1190 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 FROM: iJ1 ' I Greg Sticha, Finance Director & DATE: June 22, 2009 SUBJ: Review of 2008 Audit The Finance Department just finished another audit cycle. Andy Herring from .fll.,B 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.