2011 audit completed for the city of Randall
By Tina Snell, Staff Writer
On Wednesday, the Randall City Council accepted the 2011 audit as presented by Mary Backlund of Gary Paulson CPA office in Little Falls. She listed a few concerns, but nothing the city hadn’t seen before.
“Proper conduct of government business needs good internal controls,” she wrote in her report. “The same person writes checks, makes deposits and/or posts to journals. Those functions are not compatible, yet the size of the city would not justify the cost required to implement proper segregation of duties.”
Backlund said city employees should be able to prepare all financial statements, which are currently being done by the auditor. She recommended the city management and accounting personnel continue to review, approve and accept responsibility for the financial statements.
For the past several years, Randall’s sewer and water fund has had significant losses. The operating margins of the fund don’t allow for any unexpected expenditures that may arise. The auditor recommended looking into increasing revenue or reducing expenditures to ensure future profitability.
In the cash basis financial audit, it shows the general fund receipts at $337,230 for 2011, a 0.1 percent decrease from 2010.
Disbursements for the year were budgeted at $356,895 with the actual amount being $348,211, a 2.4 percent decrease. This was due, in part, to the reduction in the city’s police coverage, which was decreased from $105,512 in 2010 to $51,777 in 2011, a 51 percent decrease.
Total disbursements were down 5.6 percent from 2010.
Operating receipts for the sewer and water fund came to $142,614, a 3.7 percent increase from 2010’s revenue of $137,474.
The sewer and water fund’s disbursements went from $105,170 in 2010, to $99,274 in 2011, a 5.6 percent decrease in expenses.
Net operating receipts for the natural gas fund came to $115,340, a 7.5 percent increase from $107,285 in 2010.
Disbursements for 2011 were $29,761, a 4.5 percent decrease from $31,153 in 2010.
Net operating receipts for the electric fund came to $104,514 for 2011, a 218 percent increase from 2010’s total net operating receipts of $32,975. The large increase reflects the True-up check of $29,115 received from Minnesota Power.
Liquor fund receipts have fallen off from last year. The Council said a lot had to do with less discretionary spending on the part of its customers.
In 2010, net receipts came to $198,151 and in 2011, those receipts were $184,194, a 7 percent decrease.
Disbursements, which include personnel, utilities, supplies, repairs and insurance, was $185,361 in 2010, and $180,209 in 2011, a 2.8 percent decrease.
Randall City Council briefs
Other business conducted by the Randall City Council Wednesday night included:
• Voting to increase drink prices in the municipal bar by 25 cents across the board;
• Approving the annual contract with the Morrison County Annual Humane Society to take care of any canines;
• Voting to accept a $1,268 grant for recycling and $375 for Clean-up Day from Morrison County;
• Granting Bill Johnson a building permit to add siding and windows to his home;
• Learning there were approximately $17,000 in delinquent utilities as of Wednesday evening; and
• Voting to move ahead with purchasing an emergency siren from Granite Electronics with funds raised by the Vision Randall group. It will cost approximately $24,000 to purchase and install.
The next city council meeting will be held at the Randall fire hall Wednesday, March 14, at 7 p.m.