CCP 05-24-2011 - Laserfiche WebLink

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Worksession Item • To: Mayor Jacobsen Council Members Bauman, Burg, Phillips and Samuelson City Manager Dean Lotter From: Dan Maiers, Director of Finance / 1C_ Subject: May 24, 2011 Worksession—2010 Comprehensive Annual Financial Report and Management Reports Date: May 19, 2011 We have prepared the Comprehensive Annual Financial Report (CAFR) for the year ending December 31, 2010. Our auditors have completed their audit of our accounting records and financial statements. They have issued a clean, unqualified opinion that our financial statements are presented fairly in all material respects. The auditors also have issued a Management Letter and Reports on Compliance with Government Auditing Standards and Legal Compliance. These reports are included with your May 24th City Council Meeting Agenda packet. It is my intention that Steve Wischmann, audit partner with Kern DeWenter Viere, review their audit of the 2010 CAFR and their management reports with you at the worksession prior to the regular Council meeting. Steve will give a presentation and be available to answer any questions that you may have. Our CAFR provides a wealth of financial information on the City of New Brighton. The Management Letter, as prepared by Kern DeWenter Viere, is intended to be a primary information tool or executive summary for the City Council. If your time is limited, then I suggest that you spend it reviewing this report, instead of the CAFR. I will give a presentation during the regular business meeting. Steve will provide his comments as well. Then it is recommended that the Council accept the Comprehensive Annual Financial Report for the year ending December 31, 2010 and the auditors' Management Letter and their Reports on Compliance with Government Auditing Standards and Legal Compliance. There was one finding in the auditors' Management Letter and Reports on Compliance with Government Auditing Standards and Legal Compliance. It is as follows along with our responses: Lack of Segregation of Accounting Duties Auditors' Comment (as paraphrased from their report): During the year ended December 31, 2010, the City had a lack of segregation of accounting duties due to a limited number of office employees. Adequate segregation of accounting duties is in place when the following four areas of a transaction have been separated: authorization, custody, recording and reconciliation. Management and the City Council must remain aware of this situation and management should continually monitor the accounting system, including changes that occur.