HomeMy WebLinkAbout6(C) Presentation 2018 Prior Lake Audit PresentationCITY OF PRIOR LAKE
AUDIT REPORT
YEAR ENDED DECEMBER 31, 2018
James H. Eichten, CPA
Opinion on Financial Statements
▪Financial statements are fairly presented in
accordance with accounting principles generally
accepted in the United States of America
Testing of Internal Controls and Compliance
▪Internal controls over financial reporting
▪Compliance with laws and regulations related to
financial reporting
State Laws and Regulations
▪Compliance with Minnesota laws and regulations
Single Audit of Federal Awards
▪Not required for calendar 2018
AUDITOR’S ROLE
Audit Summary
▪Planned scope and timing of audit
▪Audit opinions and findings
MANAGEMENT REPORT
Financial Report
▪Unmodified or Clean Opinion
▪Emphasis of Matter on Implementation of
Governmental Accounting Standards Board
(GASB) Statement #75 on Other Post -
Employment Benefits (OPEB)
Internal Controls Over Financial Reporting
▪No Findings
Legal Compliance Audit Findings
▪Timely Payment of Fire Relief State Aid
AUDIT OPINIONS AND FINDINGS
Audit Summary
Governmental Funds Overview
MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
$–
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$3,000,000,000
$3,500,000,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Taxable Market Value
MANAGEMENT REPORT (CONT.)
Tax Rates
2016 2017 2018
Average tax rate
City 32.0 32.7 33.0
County 36.2 35.9 35.1
School 32.9 30.6 33.0
Special taxing 7.2 7.8 8.7
Total 108.3 107.0 109.8
City of Prior Lake
Rates Expressed as a Percentage of Net Tax Capacity
MANAGEMENT REPORT (CONT.)
Year 2016 2017 2018
Population 2,500–10,000 10,000–20,000 20,000–100,000 25,356 26,053 26,207
Property taxes 474$ 451$ 475$ 438$ 442$ 460$
Tax increments 26 27 38 20 20 29
Franchise and other taxes 38 43 48 26 24 24
Special assessments 57 48 59 34 57 51
Licenses and permits 39 34 49 30 31 38
Intergovernmental revenues 322 276 147 65 65 71
Charges for services 108 103 103 132 202 168
Other 68 53 48 24 30 28
Total revenue 1,132$ 1,035$ 967$ 769$ 871$ 869$
December 31, 2017
City of Prior LakeState-Wide
Governmental Funds Revenue per Capita
With State-Wide Averages by Population Class
MANAGEMENT REPORT (CONT.)
Year 2016 2017 2018
Population 2,500–10,000 10,000–20,000 20,000–100,000 25,356 26,053 26,207
Current
147$ 120$ 101$ 100$ 105$ 105$
270 259 287 200 205 222
128 127 101 74 69 72
96 112 99 63 64 73
76 64 77 6 4 6
717 682 665 443 447 478
Capital outlay
and construction 403 319 263 312 451 346
Debt service
228 147 121 150 153 151
44 35 32 54 50 39
272 182 153 204 203 190
Total expenditures 1,392$ 1,183$ 1,081$ 959$ 1,101$ 1,014$
General government
Governmental Funds Expenditures per Capita
With State-Wide Averages by Population Class
December 31, 2017
City of Prior LakeState-Wide
Interest and fiscal charges
Public safety
Streets and highways
Culture and recreation
All other
Principal
MANAGEMENT REPORT (CONT.)
Increase
2018 2017 (Decrease)
Fund balances of governmental funds
Total by classification
Restricted 4,154,268$ 3,696,266$ 458,002$
Assigned 13,908,417 11,833,265 2,075,152
Unassigned 6,931,767 6,621,659 310,108
Total – governmental funds 24,994,452$ 22,151,190$ 2,843,262$
Total by fund
General 7,213,402$ 6,840,928$ 372,474$
Debt Service 3,056,581 2,659,324 397,257
Construction 3,070,306 2,324,549 745,757
Special revenue nonmajor funds 3,455,253 2,842,255 612,998
Capital projects nonmajor funds 8,198,910 7,484,134 714,776
Total – governmental funds 24,994,452$ 22,151,190$ 2,843,262$
Governmental Funds Change in Fund Balance
Fund Balance
as of December 31,
MANAGEMENT REPORT (CONT.)
2014 2015 2016 2017 2018
Fund Balance $5,776,647 $6,124,751 $6,684,920 $6,840,928 $7,213,402
Cash and Inv (Net of Borrowing)$6,622,398 $6,902,926 $7,211,301 $8,306,654 $8,938,262
Expenditures and Transfers Out $13,007,098 $12,343,815 $12,417,787 $13,208,933 $13,115,121
$–
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
General Fund Financial Position
Year Ended December 31,
MANAGEMENT REPORT (CONT.)
Taxes
Licenses
and
Permits
Intergovernmental
Charges
for
Services
Fines
and
Forfeits
All Other
2014 $7,958,467 $580,112 $1,626,194 $1,047,397 $127,225 $531,330
2015 $8,692,425 $587,464 $1,573,865 $1,048,564 $1,390 $425,561
2016 $8,886,211 $751,824 $1,581,752 $1,132,504 $4,743 $248,153
2017 $8,779,030 $820,433 $1,657,988 $1,346,676 $2,250 $324,924
2018 $8,619,057 $994,613 $1,835,750 $1,357,049 $1,448 $385,047
$–
$1,500,000
$3,000,000
$4,500,000
$6,000,000
$7,500,000
$9,000,000
General Fund Revenue by Source
Year Ended December 31,
MANAGEMENT REPORT (CONT.)
General
Government Public Safety Public Works Culture and
Recreation All Other
2014 $2,813,759 $4,732,024 $1,874,422 $1,751,005 $744,233
2015 $2,568,472 $4,821,150 $2,078,309 $1,600,071 $239,568
2016 $2,531,266 $5,034,978 $1,875,534 $1,593,975 $222,808
2017 $2,741,278 $5,239,456 $1,798,918 $1,677,597 $115,563
2018 $2,755,367 $5,746,524 $1,882,971 $1,850,587 $60,021
$–
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
General Fund Expenditures by Function
Year Ended December 31,
MANAGEMENT REPORT (CONT.)
Audit Summary
Governmental Funds Overview
Enterprise Funds Overview
MANAGEMENT REPORT (CONT.)
Increase
2018 2017 (Decrease)
Net position of enterprise funds
Total by classification
Investment in capital assets 61,697,384$ 56,639,547$ 5,057,837$
Unrestricted 6,001,160 3,877,883 2,123,277
Total – enterprise funds 67,698,544$ 60,517,430$ 7,181,114$
Total by fund
Water 40,677,486$ 34,849,695$ 5,827,791$
Sewer 24,213,054 23,575,411 637,643
Water Quality 2,808,004 2,092,324 715,680
Total – enterprise funds 67,698,544$ 60,517,430$ 7,181,114$
Enterprise Funds Change in Financial Position
Net Position
as of December 31,
MANAGEMENT REPORT (CONT.)
2014 2015 2016 2017 2018
Oper Revenue $3,051,682 $3,390,052 $3,674,099 $3,796,097 $3,959,696
Oper Expenses $2,297,197 $2,347,154 $2,493,541 $2,621,448 $2,679,154
Oper Income (Loss)$754,485 $1,042,898 $1,180,558 $1,174,649 $1,280,542
Inc Before Depr $1,390,162 $1,700,029 $1,870,854 $1,912,281 $2,084,668
$–
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Water Enterprise Fund
Year Ended December 31,
MANAGEMENT REPORT (CONT.)
2014 2015 2016 2017 2018
Oper Revenue $2,369,423 $2,432,925 $2,741,578 $3,090,773 $3,270,026
Oper Expenses $2,447,618 $2,468,932 $2,635,304 $2,771,143 $2,892,003
Oper Income (Loss)$(78,195)$(36,007)$106,274 $319,630 $378,023
Inc Before Depr $300,076 $371,068 $530,299 $789,288 $889,932
$(250,000)
$–
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
$2,000,000
$2,250,000
$2,500,000
$2,750,000
$3,000,000
$3,250,000
$3,500,000
Sewer Enterprise Fund
Year Ended December 31,
MANAGEMENT REPORT (CONT.)
2014 2015 2016 2017 2018
Oper Revenue $843,292 $865,244 $920,128 $925,988 $986,338
Oper Expenses $638,570 $560,820 $598,972 $633,557 $600,030
Oper Income (Loss)$204,722 $304,424 $321,156 $292,431 $386,308
Inc Before Depr $265,678 $396,392 $427,648 $402,799 $508,197
$–
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
Water Quality Enterprise Fund
Year Ended December 31,
Audit Summary
Governmental Funds Overview
Enterprise Funds Overview
Legislative Updates
Accounting and Auditing Updates
MANAGEMENT REPORT (CONT.)
Clean Opinion on Financial Statements
One Finding Reported
Improved General Fund and Governmental
Fund Financial Results
Improved Enterprise Fund Financial Results
Continued Ongoing Assessment of
Financial Projections and Results Including
General, Other Operational and Enterprise
Fund Activities
SUMMARY