2015 Shakopee Audit Presentation 2015

8/15/2019 2015 Shakopee Audit Presentation 2015

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City of Shakopee

2015 Audit Presentation

Steve Wischmann, CPA, CFE, CFF, MAFF

Audit Partner


2/22

2Audit Process• Planning

• Fieldwork

• Draft CAFR

• Final Reports

• Council Presentation


3/22

3Independent Auditor’s Report

• Unqualified Opinion on the Basic Financial Statements

• Comprehensive Annual Financial Report (CAFR) also reviewed

for GFOA Certificate of Achievement for Excellence in

Financial Reporting

• Explanatory paragraph for GASB 68/71 pension standard

implementation. $10,182,767 Long term liability allocated to

City of Shakopee.


4/22

4Minnesota Legal Compliance• Compliance audit based on the Minnesota Legal Compliance Audit Guide for

Local Governments covers seven areas of compliance:

! Deposits and Investments

! Conflicts of Interest

! Public Indebtedness

! Contracting and Bidding

! Claims and Disbursements

! Miscellaneous Provisions

! Tax Increment Financing

No Current Year Compliance Findings


5/22

5Government Auditing Standards Report

Report on Government Auditing Standards Findings:

•Lack of Segregation of Accounting Duties – Significant Deficiency

•Improve Ice Arena Receipting Internal Controls - Deficiency


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6Emerging IssuesAccounting and Financial Reporting for Postemployment Benefits Other than Pensions – GASB

Statement 75


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7

2011 2012 2013 2014 2015

Revenues $20,956,396 $21,770,348 $22,869,399 $23,794,189 $24,331,286

Expenditures 18,674,938 18,694,101 19,539,401 20,506,749 21,063,756

Fund Balance 9,304,194 9,522,841 9,092,989 9,838,046 9,840,110

$1,000,000

$5,000,000

$9,000,000

$13,000,000

$17,000,000

$21,000,000

$25,000,000

General Fund


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$556$575

$600 $608$616

$495 $494$513 $524

$533

$-

$100

$200

$300

$400

$500

$600

$700

2011 2012 2013 2014 2015

General Fund Revenues/Expenditures

Per Capita

Revenues Expenditures


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9General Fund Performance

Budget Actual Variance

RevenuesTaxes and assessments 16,174,500$ 16,172,118$ (2,382)$

Licenses and permits 1,348,300 2,023,436 675,136

Intergovernmental 1,028,393 1,356,733 328,340

Charges for services 4,050,700 4,452,415 401,715

Fines and forfeitures 251,000 7,093 (243,907)

Miscellaneous revenues 252,000 319,491 67,491

Total revenues 23,104,893$ 24,331,286$ 1,226,393$

Expenditures

General government 4,448,225$ 3,883,112$ (565,113)$

Public safety 9,920,344 10,227,291 306,947

Public works 3,238,343 3,036,284 (202,059)

Parks and recreation 4,260,255 3,917,069 (343,186)

Total expenditures 21,867,167$ 21,063,756$ (803,411)$

Transfers in 250,000$ 250,000$ -$

Transfers out (1,900,000) (3,515,466) (1,615,466)

Total other financing

Sources (uses) (1,650,000) (3,265,466) (1,615,466)

Change in fund balance (412,274)$ 2,064$ 414,338$


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49%51%

46%

48%

47%

0%

10%

20%

30%

40%

50%

60%

70%

2011 2012 2013 2014 2015

Unassigned Fund Balance as a Percent of Expenditures


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2011 2012 2013 2014 2015

Miscellaneous $397,477 $359,323 $132,202 $333,177 $319,491Charges for Services 3,879,113 4,035,921 4,304,786 4,294,637 4,452,415

Fines and Forfeitures 357,249 368,167 348,262 391,500 7,093

Licenses and Permits 1,225,560 1,229,184 1,443,885 1,534,165 2,023,436

Intergovernmental 796,076 991,445 1,042,127 1,191,127 1,356,733

Taxes and Assessments 14,300,921 14,786,308 15,598,137 16,049,583 16,172,118

$1,000,000

$4,000,000

$7,000,000

$10,000,000

$13,000,000

$16,000,000

$19,000,000

$22,000,000

$25,000,000

General Fund Revenues


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34.7336.66

42.00 41.44

37.86

42.53

46.26

48.79 48.75

46.89

40.03

43.45

46.14 46.01

43.37

0

5

10

15

20

25

30

35

40

45

50

55

2011 2012 2013 2014 2015

Tax Capacity Rate

City Rate State Average Metro City Average


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2011 2012 2013 2014 2015

Operating Revenues $2,936,144 $3,730,226 $2,973,474 $2,872,662 $2,845,439

Operating Expenses 3,836,202 3,953,269 4,122,406 3,734,691 3,846,338

Operating Loss (900,058) (223,043) (1,148,932) (862,029) (1,000,899)

Change in Net Position (524,858) (14,003) (1,162,542) (201,729) (1,425,120)

$(2,000,000)

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

Sewer Fund


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16

2011 2012 2013 2014 2015

Service Charges $995,855 $1,037,427 $1,047,160 $1,066,118 $1,102,728

Operating Expenses 1,411,271 1,472,361 1,604,937 1,935,464 1,748,461

Operating Loss (415,416) (434,934) (557,777) (869,346) (645,733)

Change in Net Position 55,008 431,658 (3,004) 101,746 363,481

$(1,000,000)

$(500,000)

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

Storm Drainage Fund


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$16,145,000 $19,060,000

$16,990,000

$13,830,000

$8,215,000

$11,519,054

$9,485,802$8,311,320

$7,209,611

$5,129,843

$4,625,946$9,574,198

$8,678,680

$6,620,389

$3,085,157

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

2011 2012 2013 2014 2015

Bonded General Obligation Debt

Gross Bonded Debt Debt Service Fund Balance Net Bonded Debt


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$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Debt Service Schedule


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Total Expenditures Total Revenues Tax Revenues

Shakopee $524 $608 $410

Savage 422 451 357

Eden Prairie 649 668 477

Chaska 479 468 149

$0

$100

$200

$300

$400

$500

$600

$700

$800

2014 General Fund

Revenues and Expenditures Per Capita


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General Government Public Safety Public Works Recreation

Shakopee $90 $260 $72 $102

Savage 74 198 79 48

Eden Prairie 63 295 91 164

Chaska 170 182 106 20

$0

$50

$100

$150

$200

$250

$300

2014 General Fund

Expenditures Per Capita


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teve Wischmann, CPA, CFE, CFF,

MAFF

952-563-6880

[email protected]

Thank You -Questions?

2015 Shakopee Audit Presentation 2015

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