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HomeMy WebLinkAbout1996 05-13 City Council Special Meeting PacketCORRECTED AGENDA MAPLEWOOD CITY COUNCIL 6:30 P.M., Monday, May 13, 1996 Council Chambers, Municipal Building Special Meeting No. 96 -09S A. CALL TO ORDER B PLEDGE OF ALLEGIANCE C. ROLL CALL E. APPROVAL OF AGENDA F. NEW BUSINESS 1. ANNUAL FINANCIAL REPORT AND AUDITOR'S REPORT FOR 1995 G. 00ONCIL PRESENTATIONS 1. 2. 3. 4 H. ADMINISTRATIVE PRESENTATIONS 1. 2. 3. I. ADJOURNMENT AGENDA NO. F - Z AGENDA REPORT TO: Cit Council FROM: Finance Director 4�1 RE: INFORMATION FOR MEETING WITH AUDITORS DATE: Ma 6, 1996 At 6:30 p.m. on Monda Ma 13 there is a special Council meetin to review the annual financial report and audit reports. Please brin to the meetin y our cop of the 1995 annual financial report. The attached additional reports Will also be reviewed at the meetin 1. Mana letter. 2. Le compliance -audit report letter. Please call me at 770-4513 if y ou if y ou have an q uestions on these reports, prior to the meetin on Monda PAFINANCEWMAGMAUDITAPD ti Peat Marwick LLP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Honorable Mayor and Members of the City Council City of Maplewood, Minnesota: We have audited the financial statements of the City of Maplewood, Minnesota (the City) for the year ended December 31, 1995, and have issued our report thereon dated March 15, 1996. In planning and performing our audit of the financial statements of the City e consider d its internal control structure in order to determine our auditing purpose procedures for the u ose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. We have not considered the internal control structure since the date of our letter. During our audit we noted certain matters involving the internal control structure and other operational matters that are presented for your consideration. These comments and recommendations, all of which have been discussed with the appropriate members of management, are intended to improve the internal control structure or result in other op erating efficiencies and are included as an Exhibit. This report is intended solely for the information and use of the mayor, members of the City Council, and management. We would like to take this opportunity to express our appreciation for the cooperation and assistance provided to us during p p g the audit. If you have any questions concerning the matters i discussed n this letter or wish to discuss any other phase of our audit, we would be p leased to do so at your convenience. LG4 March 15, 1996 � IT '�Y (� w dd}tt�t 44 ,.t4k r� �c3 �{�,�'��; • - • Exhibit CITY OF MAPLEWOOD Comments and Recommendations City Clerk's Office The clerk's office receives cash for permits, licenses, sewer rental, and other transactions. The clerk's office secures the cash/checks in a cash drawer, records the transaction on a sequentially numbered form, and stamps the permit, license, or other certificate as paid. Each day the cash/checks are deposited into a bank account and the forms are reconciled, totaled, and sent to accounting for input into the general ledger system. We recommend the City consider the cost/benefit of installing an automated cash register system in the clerk's office. An effective system will issue receipts, track several types of transactions, and electronically update the general ledger system. This will help improve controls and minimize the opportunity for manual errors and misappropriations. Community Center Theatre The community center theatre has multi -level pricing for the same performance, however the price of the performance is not printed on the tickets. (i.e. Difference prices for residents, non- residents, adults, children.) This allows the ticket sellers to charge a higher price without reporting the higher price to the City. We recommend the City consider the cost/benefit of installing a ticketing system that records the price of the performance on the ticket and in the ticketing system. An effective ticketing system will allow the City. to reconcile the prices charged and printed on the tickets to the cash collected. This will help improve controls and minimize the opportunity for misappropriations. Public Works Garage Inventory The public works garage inventory includes fuel and maintenance parts. The City limits access to the fuel inventory, however several employees have access to the maintenance arts inventor . p ry . In addition, the fuel and parts computer inventory systems are not physically secure. We recommend the City limit access of the maintenance parts inventory to the public works mechanics. We also recommend the City establish password access to the computer inventory systems. These recommendations will help improve inventory tracking, minimize stock outs, and minimize the opportunity for misappropriations. MRN Peat Marwick LLP .- 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Mayor and City Council City of Maplewood, Minnesota We have audited the general purpose financial statements of the City of Maplewood, Minnesota (the City), as of and for the year ended December 31, 1995, and have issued our report thereon dated March 15, 1996. We conducted our audit in accordance with generally accepted auditing standards and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Legal Compliance Task Force pursuant to Minn. Stat. Sec. 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that for the items tested the City complied with the material terms and conditions of applicable legal provisions, except as described in the Schedule of Finding on Legal Compliance. Further, for the items not tested, based on our audit and the procedures referred to above, nothing came to our attention to indicate that the City had not complied with such legal provisions. This report is intended solely for the use of the City and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record. March 15, 1996 Exhibit CITY OF MAPLEWOOD, MINNESOTA Schedule of Finding on Legal Compliance Finding: MN Stat. Sec. 118.01, subd. 2 provides that the City hall have y collateral pledged in excess of 110% of uninsured deposits. The City did not have sufficient pledged collateral in excess of 110% of uninsured deposits as of December 31, 1995. Recommendation: We recommend the City se the bank ledger y g balance instead of the bank collected balance when determining collateral requirements. Management's Response: The City has purchased additional collateral as of March 18 ' 1996. This additional collateral should be sufficient to cover the Cit 's uninsured daily e addition, y y p osi t balances. In addition, the City will use the bank ledger balances when determining collateral requirements.