Agenda - Council - 02/12/1980 - Laserfiche WebLink

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FI.UANC IAL ACTM:TI~- CITY OF, RAMBEY, MINNESOTA LOCAL PUBLIC WORKS PROJECT NO. 06- NOTES TO FINANCIAL STATEMF~ ATTACHMENT 1 i F reiJrninary ! Draft ' To be returned to 51 -H;~"~}"~-Z Haskins & Sells and not to be reproduced 'Tsin any form - without their permission, FINANCIAL STATEMENT PRES~TATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. The financial statements presented_ are prepared from only the accounts and financial transactions of the Local Public Works P~oject No. '06-51-02857 of the City of Ramsay, Minnesota. Accordingly, they do not present the financial position or the results of operations of the City of Ramsay, Minnesota. 2. The financial transactions of the project are recorded in accordance with the terms and conditions of the grant, which are not inconsistent with generally accepted accounting principles. B. Expenditures are recorded on the accrual basis of accounting. Purchases of equipment are recorded .as expenditures. QUESTIONED COSTS 1. Administrative costs of ~350 representing accrued project coordinator's fees are questioned, These costs~ were not supported by adequate documentation. ' Basic. A/E. fees fo~ _~rchitect? s',-_fees~ amounting _to,~ ~9,-5~1 related to the completion of the design development phase are questioned, as these costs were incurred prior to submission of the grant application. CONTRACTOR DISPUTE The heating system for the city hall and fire station has been malfunctioning- The City believes the system defects are to be covered under warranty and is currently attempting to have the contractor and heating subcontractor make the necessary ~epsirsj However, the contractors dispute the City's position and are resisting the City's efforts. If the corrections are not made, the City is considering legal action against the parties involved for either specific performance of repairs or damages. The City has refused to sign the Architects/Engineers Certificate of Approval until this matter is resolved.