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9.a1 Audit PresentationCity of Scandia, Minnesota SCHLENNER WENNEV.&CO, CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS CONSULTANTS An independently Owned memt)er RSM US Alliance RSM Presentation of Audited Financial Statements December 31, 2016 Working Not just Ncrmb rs Audit Results SCHLENNER WENNER,Co. CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS CONSULTANTS Auditor's Report on Financial Statements (page 2) Management Responsibility Accuracy of the Financial Statements Auditor Responsibility Conduct audit in accordance with Government Auditing Standards Provide an opinion on the Financial Statements A Unmodified (clean) opinion Working with People, Notjust Numbjrs Financial Highlights Governmental Funds - General RESOURCES (INFLOWS): Taxes Licenses, Permits, and Fees Intergovernmental Charges for Services Fines Investment Income Miscellaneous AMOUNTS AVAILABLE Budget Amounts - Original and Final $ 1,519,950 91,295 42,146 70,015 12,000 4,500 14,500 1,754,406 Actual Amounts Budgetary Bas is $ 1,507,907 160,513 57,259 65,056 11,633 6,891 34,628 1,843,887 SCHLENNER WENNER&CC. CERTIFIED PUBLIC ACCOUNTANTS S BUSINESS CONSULTANTS Variance with Final Budget Over (Under) $ (12,043) 69,218 15,113 (4,959) (367) 2,391 20,128 89,481 Working with People, Notjust Num,b3rs SCHLENNER ENNER&Ca. Financial t CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS CONSULTANTS Governmental Funds - General (Continued) Budget Actual Variance with Amounts- Amounts Final Budget Original and Budgetary Over Final Basis (Under) CHARGES TO APPROPRIATIONS (OUTFLOWS): General Government: Mayor and Council 18,976 17,645 (1,331) Planning and Buildings 96,206 112,603 16,397 Elections 6,150 5,428 (722) General Government 322,849 320,483 (2,366) Public Safety: Police 116,197 120,696 4,499 Fire 238,076 200,276 (37,800) Public Works 848,929 603,019 (245,910) Parks and Recreation 109,140 90,772 (18,368) Capital Outlay 5,000 - (5,000) Transfers Out 347,724 347,724 - TOTAL CHARGES 2,109,247 1,818,646 (290,601) BUDGETARY CHANGE IN FUND BALANCE $ (354,841) 25,241 $ 380,082 FUND BALANCES - BEGINNING 1,746,587 FUND BALANCES - ENDING $ 1,771,828 Working with People, Notjust Numb3rs SCHLENNER FinWENNER&CO. a�nci H I � CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS CONSULTANTS Governmental Funds - Capital Projects Equipment Capital Local Road Park Capital Replacement Improvement Improvement Improvement REVENUES Taxes Charges for Services Investment Income Miscellaneous TOTAL REVENUES EXPINDTfURES Current: Public Works Capital Outlay TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES Proceeds on Sale of Assets Operating Transfers In TOTAL OTHER FINANCING SOURCES NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING FUND BALANCES - ENDING $ - $ 30,000 $ 581,142 $ - - 6,000 1,803 1,144 1,490 60 - - 6,514 2,193 1,803 31,144 589,146 8,253 2,370 - - - 965,806 - 2,370 965,806 - 1,803 28,774 (376,660) 8,253 28,650 - - - - - 347.724 - 28,650 - 347.724 30,453 28,774 (28,936) 8,253 470,608 356,057 402,956 (19,812) $ 501,061 $ 384,831 $ 374,020 $ (11,559) Working with People, NotJust Numb3rs Financial Highlights Governmental Funds -Special Revenue REVENUES Intergovernmental Investment Income TOTAL REVENUES EXPENDITURES Current: Economic Development -01 FUND BALANCES - BEGINNING FIND RALANCFN - F, D NG Economic Public Development Housing Authority Fund Fund $ 90,486 $ - - 20 90,486 20 90,486 325 - (305) 5,396 $ - $ 5,091 SCHLENNER ENNERCO. CERTIFIED PUBLIC ACCOUNTANTS S BUSINESS CONSULTANTS Working with People, Not just Numb jrs SCHLENNER WENN'ER&CO. Financial I CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS CONSULTANTS Governmental Funds - [debt Service Debt Service Fund REVENUES Taxes $ 148,582 Special Assessments 36,157 Long-term Debt Outstanding at 12/31/16: Investment Income 420 TOTAL REVENUES 185,159 2013 Equipment Certificate $ 405,000 EXPENDITURES Debt Service: 2015 Equipment Certificate 172,000 Principal 168,000 Interest and Other Charges 16,798 Total Long-term Debt:. $ 577,000 TOTAL EXPENDITURES 184,798 NET CHANGE IN FUND BALANCE FUND BALANCE- BEGINNING ivi TNTI n A T. A ivrr _ FNTITN!_ It 361 113,260 113,621 Working with People, Not just Numb jrs Financial Highlights Enterprise Funds -Operating OPERATING REVENUES Charges for Services OPERATING EXPENSES Wages and Benefits Materials and Supplies Professional Services Repairs and Maintenance Other Services and Charges Depreciation TOTAL OPERATING EXPENSES NET OPERATING LOS S SCHLENNER, WENNER&CU. CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS CONSULTANTS 201 Sewer Uptown Sewer Fund Fund Totals $ 72,103 $ 19,117 $ 91,220 36,263 11,324 47,587 619 30 649 5,298 204 5,502 20,363 2,240 22,603 9,397 3,105 12,502 38,262 4,876 43,138 110,202 21,779 131,981 $ (38,099) $ (2,662) $ (40,761) Working with People, Notjust Numb3r5 Financial Highlights Enterprise Funds - Nonoperating NONOPERATING INCOME Special Assessments Intergovernmental Investment Income TOTAL NONOPERATING INCOME CHANGE IN NET POSITION NET POSITION -BEGINNING OF YEAR I00118Z17.11000 D0xP e] 14 :I 201 Sewer Uptown Sewer Fund Fund $ 9,688 $ 136 222 10,046 (28,053) 892,729 SCHLENNER ENNER&Q0.. CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS CONSULTANTS Totals - $ 9,688 39 175 5 227 44 10,090 (2,618) (30,671) 163,572 1,056,301 $ 864,676 $ 160,954 $ 1,025,630 Working with People, NotJust Numb3rs Financial Highlights Miscellaneous Investment Income Intergovernmental Taxes Grants and Contributions Charges for Services Total Government -Wide Revenues SCHLENNER ENNEF CQ. CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS CONSULTANTS $_ $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Working with People, Not>ust Num,bjrs Charges for Services Grants and Contributions Taxes Intergovernmental Investment Income Miscellaneous ■ 2015 $313,345 $62,349 $2,264,524 $87,236 $10,218 $23,652 ■ 2016 $336,522 $142,797 $2,267,065 $25,844 $12,055 $66,556 Working with People, Not>ust Num,bjrs Financial Highlights Uptown Sewer 201 Sewer OML Debt Service Economic Development Parks and Recreation Public Works Public Safety General Government S - Total Government -Wide Expenses S CHLENNER WENNER&CO. CERTIFIED PUBLIC ACCOUNTANTS 6 BUSINESS CONSULTANTS General Government 2015 $499,996 $200,000 $400,000 $600,000 $800,000 Public Safety Parks and Economic $340,909 ■ 2016 $488,880 $368,621 Public Works Debt Service Recreation _ _Development _ _ $1,050,232 $94,646 $365 $26,972 $967,057 $103,303 $90,811 $15,314 $1,000,000 $1,200,000 201 Sewer Uptown Sewer $101,179 $16,821 $110,202 $21,779 Working with People, Notjust Numb3rs SCHLENNER WENN ERCO. Area CERTIFIED PUBLIC ACCOUNTANTS City Comparison& BUSINESS CONSULTANTS Below are comparative numbers for 2015 as compiled from the Minnesota State Auditor's Office. Such information is available at www.auditor.state.mn.us. Population Taxable Tax Capacity Net Tax Levy Total Revenue Total Current Expenditures Total Capital Outlay Total Debt Service Total Expenditures As Per Capita: Taxable Tax Capacity Net Tax Levy Total Revenue Total Current Expenditures Total Capital Outlay Total Debt Service 3,896 $ 611 3,675 $ 4,463 3,828 $ 6,060,643 $ 2,246,737 $ 3,226,067 $ 4,473,652 $ $ 2,098,165 $ 909,203 $ 1,728.798 $ 2,183,808 $ $ 2,667,110 $ 4,598,820 $ 2,962,263 $ 3,768,762 $ $ 1,555,469 $ 2916,030 $ 1,817.185 $ 2,465,359 $ $ 903,606 $ 4,485,523 $ 1,397,870 $ 161,812 $ $ 531.094 $ 186,199 $ 369,540 $ 1,868,206 $ 71 $ 133 $ 136 $ 51 $ 2,990,169 $ 7,587,752 $ 3,584,595 $ 4,495,377 $ M ' 3,582 5,156 2,960,345 $ 4,648,016 2,071,451 $ 2,034,928 3,958,206 $ 3,431,966 2,664,229 $ 2,209.603 253,800 $ 684,200 3,431,324 $ 4,962,416 $ 1,556 $ 611 $ 723 $ 1.169 $ 826 $ 901 $ 539 $ 247 $ 387 $ 570 $ 578 $ 395 $ 685 $ 1,251 $ 664 $ 985 $ 1,105 $ 666 $ 399 $ 793 $ 407 $ 644 $ 744 $ 429 $ 232 $ 1,221 $ 313 $ 42 $ 71 $ 133 $ 136 $ 51 $ 83 $ 488 $ 143 $ 401 $ 767 $ 2,065 $ 803 $ 1,174 $ 958 $ 962 Working with People, Notjust Numb3rs Internal Controls and Legal Compliance Internal Control Findings: Lack of Segregation of Duties SCHLENNER WENNER&CO. CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS CONSULTANTS Report on Minnesota Legal Compliance: No findings Working with People, NotJust Numb3rs Report to the Members wE� ��o. CERTIFIED of Governance and CompliancUNTANTS e`;;"`_��.N_ Required Communications: F No new accounting policies were adopted No significant/ unusual transactions No alternative treatments used No estimates that we have deemed significant to the financial statements Minor audit adjustments were posted . No uncorrected misstatements Working with People, NotJust Num,b3rs Report to the Members wE�E��o. of Governance and Complianc"e""ESS "TS Required Communications (continued): -�No disagreements with management No consultations with other accountants : No significant issues discussed with management �No significant difficulties encountered during the audit Working with People, Notjust Numb3rs SC LENNER WENNER&CO. CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS CONSULTANTS Ryan J. Schmidt, CPA Audit Manager Ph. 320-251-0286 rschmidt@swcocpas.com Working with People, Notjust Numb3rs