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10.a 2024 Audit Presentation - Scandia
City of Scandia, Minnesota Presentation of the Audited Financial Statements Fiscal Year Ended December 31, 2024 Audit Process and Opinion Unmodified (Clean) Opinion General Procedures Obtain Records Inquiries Analytical Procedures Sampling Detail Testing Required Communications Audit went smoothly Positive Working Relationship with Management Nothing unusual noted in terms of recorded transactions or accounting policies/treatments Significant estimates for -Net Pension Liability/Balances Internal Controls Over Financial Reporting AUDIT ADJUSTMENTS SEGREGATION OF DUTIES FINANCIAL STATEMENT PREPARATION •Various adjustments recorded during our audit process •Your City has a lack of proper segregation of duties, which is very common for a City of your size •We have prepared the financial statements on behalf of the City Minnesota Legal Compliance •Areas Reviewed •Contracting and Bidding •Depositories of Public Funds •Conflicts of Interest •Public Indebtedness •Claims and Disbursements •Miscellaneous Provisions •Findings: •None ❑Revenues were under budget by $11,004 ❑Expenditures were under budget by $147,568 ❑Transfer to Park Capital Improvement - $125,000 2023 2024 2024 Budget Revenues 2,270,825$ 2,341,684$ 2,352,688$ Expenditures 2,114,350 2,186,173 2,333,741 Other Sources (Uses)(146,620) (125,000) - Change in Fund Balance 9,855 30,511 18,947 Fund Balance 1,359,642$ 1,390,153$ N/A $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2020 2021 2022 2023 2024 2024 Budget General Fund - Trend Analysis & Budgetary Comparison Revenues Expenditures Fund Balance Detailed Revenue AnalysisGeneral Fund Taxes Licenses, Permits, and Fees Inter-governmental Charges for Services Fines & Miscellaneous Interest Income 2023 1,883,849 195,194 83,775 58,499 19,710 29,798 2024 1,862,265 237,885 106,841 62,311 31,762 40,620 2024 Final Budget 2,006,273 179,100 87,919 52,565 21,195 5,636 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Detailed Expenditure AnalysisGeneral Fund General Government Public Safety Public Works Parks and Recreation Capital Outlay 2023 633,330 634,771 680,238 144,544 21,467 2024 606,323 691,495 712,183 147,653 28,519 2024 Final Budget 667,206 631,166 815,370 183,899 36,100 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 ❑City policy is to maintain as unassigned general fund balance that falls within 50%-65% of the total annual General Fund operating expenditures 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% 80.0% 85.0% 90.0% 2020 2021 2022 2023 2024 Unassigned Fund Balance as a Percentage of the Annual Budget Year Percentage 2020 83.8% 2021 74.9% 2022 70.7% 2023 61.2% 2024 58.6% Cash Trend AnalysisGeneral Fund $1,350,000 $1,400,000 $1,450,000 $1,500,000 $1,550,000 $1,600,000 $1,650,000 $1,700,000 $1,750,000 2020 2021 2022 2023 2024 General Fund Financial Highlights Other Governmental Funds Capital Improvement Fund Equipment Replacement Fund Revenues 309,529$ 166,410$ Expenditures 331,106 285,661 Other Sources (Uses)(150,000) 674,894 Change in Fund Balance (171,577) 555,643 Fund Balance 537,222$ 705,981$ $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Capital Improvement Fund Equipment Replacement Fund Revenues Expenditures Fund Balance Cash Trend Analysis Other Governmental Funds $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2020 2021 2022 2023 2024 Capital Improvement Fund Equipment Replacement Fund Financial Highlights Other Governmental Funds *Financial data for remaining nonmajor governmental funds can be found beginning on page 72 in the Audited Financial Statements. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 Local Road Improvement Fund Debt Service Fund Revenues Expenditures Fund Balance Local Road Improvement Fund Debt Service Fund 480,918$ 402,157$ 3,304,670 333,219 3,276,336 666,693 452,584 735,631 552,586$ 829,965$ Revenues Expenditures Other Sources (Uses) Change in Fund Balance Fund Balance Cash Trend Analysis Other Governmental Funds $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 2020 2021 2022 2023 2024 Local Road Improvement Fund Debt Service Fund Historical Trends Big Marine Sewer Fund $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 2020 2021 2022 2023 2024 Operating Revenues Operating Expenses 2020 2021 2022 2023 2024 Operating Revenues 83,175$ 98,001$ 101,783$ 139,546$ 170,023$ Operating Expenses 120,995 101,246 117,062 123,718 160,839 Operating Income (Loss)(37,820) (3,245) (15,279) 15,828 9,184 Nonoperating Revenues & Transfers In 54,949 8,832 11,841 9,968 1,854 Change In Net Position 17,129 5,587 (3,438) 25,796 11,038 Ending Net Position 828,105$ 833,692$ 830,254$ 856,050$ 867,088$ Historical Trends Uptown Sewer Fund 2020 2021 2022 2023 2024 Operating Revenues 12,546$ 15,132$ 17,442$ 22,166$ 26,693$ Operating Expenses 12,293 19,582 21,515 23,299 19,399 Operating Income (Loss)253 (4,450) (4,073) (1,133) 7,294 Nonoperating Revenues & Transfers In 252 71 84 327 161 Nonoperating Expenses & Transfers Out - - - - - Change In Net Position 505 (4,379) (3,989) (806) 7,455 Ending Net Position 169,448$ 165,069$ 161,080$ 160,274$ 167,729$ $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 2020 2021 2022 2023 2024 Operating Revenues Operating Expenses Cash Trend Analysis Business- Type Funds $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 2020 2021 2022 2023 2024 Big Marine Sewer Uptown Sewer Government-Wide Assets $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Current Assets $4,970,693 $4,738,187 $4,468,956 $3,879,220 $4,708,612 Capital/Noncurrent 15,241,235 15,899,654 16,185,188 16,690,697 19,467,247 Government-Wide Liabilities $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Current Liabilities $438,005 $523,441 $598,068 $526,477 $523,938 Debt/Noncurrent 3,795,689 3,480,490 3,142,000 2,860,273 6,577,403 Net Pension Liability 412,196 286,330 676,594 402,861 284,179 Governmental FundsFuture Debt Payments - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Governmental Funds Future Debt Payments Gov Activities Principal Gov Activities Interest Questions? Ryan Schmidt, CPA Partner rschmidt@schlennerwenner.cpa 320-251-0286