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CASE # / RECEIVE AND REVIEW THE 1993 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) By: Jessie Hart, Finance Officer [THIS REPORT IS INCLUDED WITH THE AGENDA AS A SEPARATE ITEM] Background: The City of Rarnsey is;required to undergo a certified audit ,on an annual basis, of all of its funds and account groups. This audit islperformcd by the firm of Malloy, Karnowski, Radosevich and Company, P.A. The preparation of the Comprehensive Annual Financial Report (CAFR) is done by the Finance Department under the direct charge of the Acgounting Supervisor Mary Gomez, and mc. The report, as it appea~ this year, is somewhat different than it has been the last several years. Incorporated into the CAFR for 1993, i~; an extensive transmittal letter at the beginning of the report and the addition of the statistical section nearltbe end of the report. Inclusion of this information delayed the final preparation of the report s~nce some of ~tlrequired a bit of "digging" to recreate, but I feel this added information has given it more usefulness as a working tool. We were 'also able to make several "cosmetic" changes that had been recommended over the past several y~ars, but weren't made duc to the timing of finalizing the CAFR in those years. I believe that this repo~ would be a good candidate for receiving the "Certificate of Achievement for Excellence in Financial Reporting" (Certificate) that is presented by the Government Finance Officers Association of the United States and Canada. 'v~hile some people do not place a significant weight on this award, financing and rating agencies, such as Mocidy's, view this as a "plus" when dealing with a City that holds it. While we will not be applying for the Cert!ficatc w~th the 1993 CAFR, I wtll be requesting the fundmg in the 1995 budget for submittal of the 1994 CAFR. At tonight's meeting, ! will review the transmittal letter, all of the auditor,s opinions on the report, as well as those included in conjIjnction with legal compliance issues. I will also review any of the information that is requested by individu~ members of thc Committee. The5e will not be a single audit report issued this year due to the Iow.level of "federal pass through funds" to the Cit3. These include (~DBG funds as well as most of the DNR grants that we apply for and receive. Unless the Government changes the threshold on the funding levels, it will be necessary to have the single audit done during the 1994 audit, which ~equires additional testing and report preparation on the part of the auditors. The auditors, as a part:of their work, prepare a Management Report for the City. This report will be presented and reviewed at the Rggular City Council meeting on July 12, 1994, by Ken Malloy, a partner with the firm of Malloy, Karnowski, R.[adosevich and Company, P.A. Committee Action: Accept 1993 Comprehensive Annual Financial Report and authorize the Finance Officer to submit it to thc State of Minnesota Department of Revenue and other agencies as required. Reviewed by: Finance Officer Copies Distributed to: City Administrator Police Chief City Engineer Administrative Services Manager FC: 06/28/94