10.a City of Scandia Audit PresentationCity of Scandia,
Minnesota
Presentation of the Audited Financial Statements
Fiscal Year Ended December 31, 2021
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 include the
calculation of Net Pension
Asset/Liability and related balances
Controls and Compliance
AUDIT ADJUSTMENTS INTERNAL CONTROLS MINNESOTA LEGAL
COMPLIANCE
•We proposed several
audit adjustments that
were material to the
financial statements –
primarily related to the
adjustment of several
accrual accounts
•Your City has a lack
of proper segregation
of duties, which is
very common for a
City of your size
•Schlenner Wenner &
Co. prepares your
City’s financial
statements
•No instances of
noncompliance were
identified as a result of
our procedures
❑Revenues exceeded
budgeted amounts by
$162,192
❑Expenditures were under
budgeted amounts by
$38,192
2020 2021 2021 Budget
Revenues 1,864,211$ 1,837,292$ 1,675,100$
Expenditures 1,583,713 1,739,530 1,777,722
Other Sources (Uses)(12,300) (282,690) (278,560)
Change in Fund Balance 268,198 (184,928) (381,182)
Fund Balance 1,535,222$ 1,350,294$ N/A
Detailed Revenue AnalysisGeneral
Fund
Detailed Expenditure AnalysisGeneral
Fund
❑City policy is to maintain a minimum unassigned
general fund balance equal to 35%-50% of the total
annual General Fund operating expenditures
Year Percentage
2017 93.2%
2018 93.0%
2019 74.2%
2020 83.8%
2021 74.9%
50.0%
55.0%
60.0%
65.0%
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
100.0%
2017 2018 2019 2020 2021
Unassigned Fund Balance as a Percentage of the Annual Budget
Cash Trend AnalysisGeneral
Fund
Financial Highlights
Other Governmental Funds
Capital
Improvement
Fund
Local Road
Improvement
Fund
Revenues 111,228$ 532,199$
Expenditures 535,983 960,101
Other Sources (Uses)200,000 80,000
Change in Fund Balance (224,755) (347,902)
Fund Balance 635,904$ 1,252,549$
Financial Highlights
Other Governmental Funds
Debt Service
Fund
Nonmajor
Governmental
Funds
Revenues 445,585$ 447,984$
Expenditures 427,018 67,078
Other Sources (Uses)- 2,690
Change in Fund Balance 18,567 383,596
Fund Balance 45,963$ 753,817$
Cash Trend Analysis
Other
Governmental
Funds
Financial Highlights
201 Sewer
Enterprise
Fund
2017 2018 2019 2020 2021
Operating Revenues 86,418$ 85,518$ 81,238$ 83,175$ 98,001$
Operating Expenses 101,976 98,411 118,015 120,995 101,246
Operating Income (Loss)(15,558) (12,893) (36,777) (37,820) (3,245)
Nonoperating Revenues & Transfers In 1,924 1,519 8,085 54,949 8,832
Change In Net Position (13,634) (11,374) (28,692) 17,129 5,587
Ending Net Position 851,042$ 839,668$ 810,976$ 828,105$ 833,692$
Financial Highlights
Uptown Sewer
Enterprise
Fund
2017 2018 2019 2020 2021
Operating Revenues 17,371$ 21,347$ 20,535$ 12,546$ 15,132$
Operating Expenses 17,185 17,405 14,180 12,293 19,582
Operating Income (Loss)186 3,942 6,355 253 (4,450)
Nonoperating Revenues & Transfers In 38 97 11 252 71
Nonoperating Expenses & Transfers Out - - 2,640 - -
Change In Net Position 224 4,039 3,726 505 (4,379)
Ending Net Position 161,178$ 165,217$ 168,943$ 169,448$ 165,069$
Cash Trend AnalysisEnterprise
Funds
Total Government-Wide AssetsFinancial
Highlights
Total Government-Wide LiabilitiesFinancial
Highlights
Long Term Debt
Outstanding
Currently includes:
•2013 Certificates of Indebtedness
•2017 Certificates of Indebtedness
•G.O. Street Reconstruction Bonds, Series 2018A
Upcoming Accounting
Standard –GASB 87
Leases
Old Method
•Operating Leases
•Capital Leases
New Method
•Short-term Leases
•Contracts that Transfer Ownership
•All Other Leases (most former Operating Leases)
Biggest Impact
•A “lease liability” and corresponding “right-to-use
asset” will need to be calculated and recorded for
most leases
Questions?
Jon Archer, CPA
Partner
jarcher@schlennerwenner.cpa
320-251-0286