HomeMy WebLinkAbout2010 06-07 CCM Joint Work Session with Financial Commission MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN AND THE STATE OF MINNESOTA
JOINT WORK SESSION WITH FINANCIAL COMMISSION
JUNE 7, 2010
CITY HALL - COUNCIL CHAMBERS
CALL TO ORDER
The Brooklyn Center City Council met in Joint Work Session with the Financial Commission and
the session was called to order by Mayor Tim Willson at 6:32 p.m.
ROLL CALL
Mayor Tim Willson and Councilmembers Kay Lasman, Tim Roche, and Mark Yelich.
Councilmember Dan Ryan arrived at 6:35 p.m. Also present: City Manager Curt Boganey, Fiscal
and Support Services Director Dan Jordet, Assistant Finance Director Clara Hilger, and Deputy City
Clerk Maria Rosenbaum.
Others present were Financial Commissioners Philip Berglin, Steve Landis, Susan Shogren Smith,
and Rex Newman. Financial Commissioner Dan Schueller arrived at 6:37 p.m.
A motion by Councilmember Lasman, seconded by Councilmember Roche to approve this
evening's agenda. Motion passed unanimously.
AUDITOR REPORT AND MANAGEMENT LETTER
Malloy, Montague, Karnowski, Radosovich, & Company, P.A. had been selected for the City's
Auditing Firm and Jim Eicthen was introduced to review the City's Management Report and Special
Purpose Audit Reports.
Mr. Eichten outlined the auditor's role and informed that as part of the audit's findings, there were
two matters involving the City's internal control over financial reporting. Mr. Eichten summarized
the two internal control findings as follows:
2009 -1 Preparation of Adjusting Journal Entry
During the audit it was noted that a material adjusting journal entry was made by the City to
make the general ledger fairly stated. Auditing standards recently issued consider the
identification by the auditor of a material misstatement that was not initially identified by the
audit entry to be a material weakness in the related internal control.
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2009 -2 Lack of Management Approval
It was noted that one area within the accounting and reporting internal accounting control
systems lacked management approval:
• There is no approval of payroll by management, nor are payroll registers reviewed
throughout the year. The allocation of payroll costs should also be monitored and
approved by Department Heads on a periodic basis.
Mr. Eichten discussed and informed that pages four through nineteen of the Management Report
were financial results and pointed out benchmarks for Legislation, Federal Recovery Act, Property
Taxes, Taxable Market Values and Tax Capacity, Governmental Funds Revenue per Capita, General
Fund Balance and Expenditures, Operating Revenue and Income (Loss), Utility Funds, Enterprise
Funds, and Statement of Net Assets.
Mr. Eichten wrapped up his summarization informing that the City had once again received a clean
opinion on their financial statement, had eliminated prior year findings, and overall is improving the
financial condition in the City's General Fund.
Fiscal and Support Services Dan Jordet outlined the information that was provided this evening with
regards to the 2009 Comprehensive Annual Financial Report (CAFR) for the year ended December
31, 2009, and informed that future budget work sessions the Council and Financial Commission will
need to look at what needs to be considered for 2011 and 2012.
Fiscal and Support Services Director Jordet informed that if there were no objections to the Audit
Report and Management Letter, those items will be on the June 28, 2010, City Council Agenda for
approval and adoption.
ADJOURNMENT
Councilmember Lasman moved and Councilmember Yelich seconded to adjourn the Work Session
at 7:43 p.m. Motion passed unanimously.
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STATE OF MINNESOTA)
COUNTY OF HENNEPIN) ss. Certification of Minutes
CITY OF BROOKLYN CENTER)
The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn
Center, Minnesota, certifies:
1. That attached hereto is a full, true, and complete transcript of the minutes of the of the
City Council of the City of Brooklyn Center Joint Work Session with Financial
Commission held on June 7, 2010.
2. That said meeting was held pursuant to due call and notice thereof and was duly held at
Brooklyn Center City Hall.
3. That the City Council adopted said minutes at its June 14, 2010, Regular Session.
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City Clerk Mayor
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