HomeMy WebLinkAboutCAFR-2018
Comprehensive Annual Financial Report
For the year ended December 31, 2018
City of Brooklyn Center, Minnesota
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INDEPENDENT AUDITORS REPORT
To the City Council and Management
City of Brooklyn Center, Minnesota
RFS
EPORT ON THE INANCIAL TATEMENTS
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund,and the aggregate remaining fund information of the City of Brooklyn Center,
Minnesota(the City)as of and for the year ended December 31,2018,and the related notes to the
financial statements, which collectively comprise the Citys basic financial statements as listed in the
table of contents.
MRFS
ANAGEMENTSESPONSIBILITY FOR THEINANCIAL TATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
AR
UDITORSESPONSIBILITY
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the Cityspreparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Citys
internal control. Accordingly, we express no such opinion. An audit alsoincludes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
(continued)
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O
PINIONS
In our opinion, the financial statements referred to on the previous page present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities, each
major fund,and the aggregate remaining fund informationof the City as of December31,2018, and the
respective changes in financial position and, where applicable, cash flows thereof,and the budgetary
comparison for the General Fund and budgeted major special revenue funds for the year then ended, in
accordancewith accounting principles generally accepted in the United States of America.
EM
MPHASIS OF ATTER
As described in Note 1 of the notes to basic financial statements, the City has implemented Governmental
Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions, during the year ended December 31, 2018. Our opinion is
not modified with respect to this matter.
OM
THER ATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the managements
discussion and analysis and the required supplementary information (RSI), as listed in the table of
contents, be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the GASB, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the RSI in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with managements responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provideany assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Citysbasic financial statements. The introductory section,combining and individualfund
statementsand schedules,andstatistical section, as listed in the table of contents, are presented for
purposes of additional analysis and are notrequired partsof the basic financial statements.
The combining and individual fund statements and schedulesare the responsibility of management and
were derived from and relate directly to the underlying accounting and other records used to prepare the
basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the
audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our opinion,
the combining and individual fund statements and schedulesarefairly stated, in all material respects, in
relation to the basic financial statements as a whole.
The introductory and statistical sectionshavenot been subjected to the auditing procedures applied in the
audit of the basic financial statements and,accordingly, we do not express an opinion or provide any
assurance onthem.
(continued)
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ORR
GAS
OVERNMENT UDITING TANDARDS
THER EPORTING EQUIRED BY
In accordance with Government Auditing Standards, we have also issued our report dated May 15, 2019
on our consideration of the Citys internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the Citys internal control over financial reporting or on compliance. That report is an integral part of
an audit performed in accordance with Government Auditing Standards in considering the Citys internal
control over financial reporting and compliance.
Minneapolis, Minnesota
May 15, 2019
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Internal service funds
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(net of depreciation)
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The notes to the financial statements are an integral part of this statement.
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The notes to the financial statements are an integral part of this statement.
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The notes to the financial statements are an integral part of this statement.
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The notes to the financial statements are an integral part of this statement.
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The notes to the financial statements are an integral part of this statement.
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The notes to the financial statements are an integral part of this statement.
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The notes to the financial statements are an integral part of this statement.
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The notes to the financial statements are an integral part of this statement.
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The notes to the financial statements are an integral part of this statement.
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Governmental activities
business-type activities
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Direct expensesProgram
revenues
general revenues.
accrual
basis of accounting
modified accrual basis of accounting
General Fund
Tax Increment District No. 3 Special Revenue Fund
Debt Service Fund
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Capital Improvements Capital Project Fund
Municipal State-Aid for Construction Capital Project Fund
Special Assessment Construction Capital Project Fund
Municipal Liquor Fund
Golf Course Fund
Earle Brown Heritage Center Fund
Water Utility Fund
Sanitary Sewer Utility Fund
Storm Drainage Utility Fund
Street Light Utility Fund
Recycling Utility Fund
Internal Service Funds
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operating non-operating
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Fund Balance
Nonspendable
estricted
R
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Committed
Assigned
Unassigned
Net Position –
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These tables contain trend information to help the reader understand the
City’s financial performance by placing it in historical perspective.
These tables contain information to help the reader assess the City’s most
significant “own-source” revenue, property taxes.
These tables present information to help the reader assess the affordability
of the government’s current levels of outstanding debt and the City’s ability
to issue debt in the future.
These tables offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take
place.
These tables contain service and infrastructure data to help the reader
understand how the City’s financial report relates to the services the City
provides and the activities it performs.
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Fund Balance and Governmental Fund Type
Definitions.
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Fund Balance and Governmental Fund Type
Definitions.
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Fund Balance and Governmental Fund Type
Definitions.
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Fund Balance and Governmental Fund Type
Definitions.
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