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HomeMy WebLinkAboutCity Council Minutes 08-09-1971 Specialr Ol Q 1 MINUTES or A SPECIAL OOUNCIL ?METING nYMUTH9 MINNESOTA AUGUST 9, 1971 A special seating of the Plymouth Village Council was called to order at 7:064:M. In the Council chambers on August 9, 1971 by Mayor Hilda, PMSENT: Mayor Hilda, Councilman Johnson, Hints, Spaeth and Hunt, Manager Willis and Finance Director Barnes.' ABSENT: None AUDIT REVIEW Mr. George M. Hansen and J. Gregory Murphy of the George M. Hanson Company, a certified public accounting firm, who audits the Plyrouth Village books were present to sake a report on their audit review. Mr. Hansen'said an audit is the best opportunity that an organization has to determin, whether or not their staff has clone an honest,. and Rood job with their resources. Their letter of July 7, 1971 containing suggested recommendations for imoroved record keeping, internal control and y.ar end transfer adjustments was reviewed and their reasons for making their recommendations was given. It was their opinion that tt,e Village fund is in very good c*ndition. Mayor Hilda said it was his opinion that their recommendation were good ones and the Council should give these strong consideration for a better ret of boake and a sharper Village operation. Finance Director Barnes' memo of August 6, 1971 covering his consents and action taken on the 1970 audit recomserdations was reviewed. The Council 'Indicated the, favored the auditor's recommendations pertaining to payroll. The Council concurred with the Finance Director's method pertaining to bank accounts. On the subject of cash collections the possible use of a bank cash bo:: system wherein all monies would go directly to the bank was suggested and discussed. Manager Willis said he will check on this. The question concerning making daily deposits was discussed. The Finance Director said it could be dun if the Police Department would take then to the bank. The Council concurred with the auditor's recommendations on this subject. On the Special Assessments recommendations finance Director Barnes said he will try to set this up now. S On check signing, Manager Willis said he and ter. Barnes will work this out. 0 0 111 Page 10 Special Meting, August 9, 1971 Dant reconciliations are being done by the Finance KrectoS'sAssIs tent, which concurs with the auditor's recommendation. On Utility Share 6f Construction Costs, the Council agt!eed with the auditor's recosmend4tion. On the reco mandatcion curred to foilow -the could be don in time completed the, soon. this last year `;and soi time to go over them. to set up a Property Accounting Ledger, the Council con - auditor's recommendation. Councilman Runt asked if this for the 1972 budget and the Manager said it could not be Finance Director Barnes said that the Council„requested as of it was submitted to rim, however he has not had the Councilman Spaeth suggested that a master lob be set up. The auditors next reviewed their 1«tter of July 69 1971 concerning information on budget variations, financial condition of certain funds, amounts required from future revenue and reference to accounting methods. Manager Willis was advised by Mayor Hilde to keep in mind Item 1, 2 and 3 pertaining to future revenue. on page 2 of this letter, when making up the budget. The Council and auditors discusead the analysis of our sewer and water operation rate study and the subject concerning a depreciation reserve. A review and discussion was held on the December 31. 1970 FiaanctiEal Statement. Mr. Kansan said now is the time to be thinking about refirancing the 1969 sho•. t tars bond issues, which can be short teased another lir. A discussion was held un the Sewer Revenue Fuad. Manager Willis said he and Financial Consultant Olsen are working on this at the present timet. A dis- cussion was held on departments that exceed their budgets end an ttat grounds they are allowed to do so. The Finance Director gave reasons for some -of the budget oiverages for which transfer* were made. Planning and Zont; Budget was discussed and how to cross check Pinner Bergly's billing for cervico fees, Manager Willis was asked by the Mayer to check the mechanics of Planner Bilrgly's billings and our procedure to collect the money from whomever it is owed and consider also the Council's concern about the development of the previouo college site. Alsot either next time the Council meets with the Planning Commission or sooner, that this sugject is to be brought up for establishment of a policy and understanding that the Council has control of all expenditures. Manager Willis said that in the future the Director of Planning and Community Develapwnt, Nartin Overhiser. will be responsible for the Planning Commission input. Mayor Hilda suggested that a variation analysis be made by the auditor on which budget overages were not authorised so that the reasons for them may be dater - mined. Mr. Hanson said this could be done. The Manager will be advised what such an analysis will cast and get back to the Council. Councilman Johnson felt this should cover items only in excess of a certain percentage figure. Manager Willis said that when such items are authorized by the Council the appropriation should be awde at the saw time to cover it. 0 of Page" 30 Special Msating, August 9. 1971 SIX MICM BUDGET REPORT Manager Willis vas asked to review thesis months budget report. He said that basically this is a by product of the NCR archin, primarily for use by the Finance Director. In terms of looking at the highlights for the year, at this point in times it appears that Village revenues are sound. So%Le items of the report were questioned and discussed. Manager Willis said he will prepare the: budget or 1972 assuming that there is no change since last year with respect to items that may be affected by legislative action. After reviev`of.;the report the Manager vas asked to oet up a quarterly budget review format for use in the future, which format should be similar ' to a business profit and lost statement, T*tion vaa..made and carried to adjourn at 9:30 P.M. s Carolina J. Hanf, Clark 0 C