City of Marshall2014 Audit

Kyle MeyersGovernmental Services Partner

kyle.meyers@aemcpas.com507-304-6801

2014 Audit Results– Audit Opinion – unmodified or “clean”– Findings

• Financial statement preparation• Audit and accounting adjustments

 

2014 Financial Results• The City’s total net position increased by $2,399,449, compared to an increase

of $4,430,219 in the previous year. • General fund balance decreased by $1,789,137, which was budgeted; year-end

unassigned fund balance at 50.0% of 2015 expenditure budget– Many other organizations, including the Office of the State Auditor (the OSA) and League

of Minnesota Cities (LMC) recommend that a fund balance reserve be anywhere from 35 to 50 percent of planned expenditures.

• With a few exceptions, mostly all other City funds have positive fund balances.• Debt service requirements steadily decrease over the next 10 years from about

$4.3m in 2015 to $2.1m in 2024.• Capital projects funds have significant unspent bond proceeds, which will be

spent down in 2015.• All enterprise funds currently have sufficient cash flows to fund operating

costs and debt service payments and healthy cash reserves to pay 3 months of operating costs and one year of debt service payments.

Thanks!

• We appreciate the opportunity to serve the City of Marshall.

• Thanks to the City staff for their assistance during the audit process.

• Questions???