HomeMy WebLinkAbout7. 2005 Annual Financial Report
7.
CITY OF SHAKO PEE
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Comprehensive Annual Financial Report
DATE: June 13, 2006
Introduction & Background
Council has retained the firm of Kern, DeWenter and Viere to audit the
financial records of the City of Shakopee for 2005. Joe Rigdon will be
at the meeting on June 20th to present their report.
The report is due to the State Auditors Office and the Government
Finance Officers Association by June 30th.
There are two reportable conditions needing management or Council's
attention. One is thelack.of segregation of payroll duties and the
other is oversight of the revenue process for the ice arena. Another
comment is a repeat of the employee recognition expenditures/food which
Council adopted a policy for earlier this year. Included in the
activity report was a letter from the State Auditor regarding that
comment. The standard comment on diversification of accounting duties
that is limited by the size of staff is repeated.
Also in the Auditor's comments is the future implementation of GASB
Statement 43 and 45. Staff has begun working on implementation. An
actuarial study is needed and the Stanton Group has been contacted to
provide a proposal.
Financially, there is nothing remarkable about 2005 compared to
previous years. General Fund had a surplus of $2,432,288. Due to
conservative spending, the budget was under spent by $1,047,557.
Development fees, building permits and conservative budgeting were
largely responsible for revenues exceeding the estimate by $1,672,915.;
Divisions exceeding the expenditure budget were Government Buildings
($9,174), Fire ($40,520) and Shop ($11,484) .
Action
Move to accept the auditor's report.
G1Jg~~
FJ.nance DJ.rector
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