by Jennie Zeitler, Staff Writer
Representatives from Royalton’s new audit firm, CliftonLarsonAllen in Waite Park, presented the annual audit report to the City Council, Tuesday.
A clean opinion was issued on regulatory financial statements.
“There were some internal control findings, material weaknesses,” said Doug Host. “There is a lack of segregation of duties for accounting functions, typical of small cities. Seventy-five to 80 percent of all cities in Minnesota get this same finding.”
The audit turned up a discrepancy in utility rates. The Council approved utility increases but the change was not made in the city’s software, Banyan. Sarah Utsch suggested that more than one person verify that changes such as that are made.
Utsch noted that the city has a petty cash fund which has been used for things other than its intended use.
“Every single penny that comes in or goes out must be recorded in Banyan,” she said. “I can’t get a comfort level if petty cash is not accounted for.”
It was also pointed out that since interfund loans are made when tax-increment financing (TIF) districts are established but before revenues are received, the Council needs to pass a resolution for each loan to approve the repayment from one fund to another with interest.
“In a difficult economic time, you’ve been able to maintain a fund balance that is healthy and stable with an 8.7-month cushion,” Host said.
Royalton City Council Briefs
Other business that came before the Royalton City Council included:
• Approving an exempt permit for a raffle, paddlewheel and tipboards at a fundraising event sponsored by the Royals Wrestling Club Aug. 1, at Scottie’s Log Bar;
• Approving the trade-in of the Public Works Department’s Bobcat for a new one with bucket and snowblower. The city will receive $32,000 for the trade-in (which cost $29,000). “It will have 12 more horsepower, a higher lift, longer length and is 72 inches wide,” said Public Works Supervisor Lee Popp;
• Tabling the hiring of an intern for the summer, which would allow the city clerk and deputy clerk to proceed with scanning city documents;
• Approving the purchase of a projector for the Fire Department at a cost not to exceed $450;
• Approving the purchase of a laptop with software and an external drive for Fire Chief Duane Bursey at a cost of $859.57;
• Accepting the low bid from Randy’s Insulation for $1,350 to blow in six inches of fiberglass insulation in the Fire Hall’s attic;
• Asking Police Chief Adam Gunderson to bring to the next Council meeting three bids for a video surveillance system for the City Complex;
• Approving basic pistol instructor training for Gunderson for a fee of $525;
• Learning that the First Responders have six openings;
• Viewing a map and estimate from City Engineer Les Mateffy for a possible water main loop from Maple Street across the river to the east. “The water would circulate better with increased quality,” Mateffy said. “There are a lot of dead ends in water lines on the east side and very little redundancy;”
• Approving up to three people to attend the Safety and Loss Control Workshop April 22;
• Approving a $500 donation to the Initiative Foundation;
• Approving the mileage reimbursement from a specified rate to “the amount set by the current fee schedule;”
• Approving an exempt permit for Holy Trinity Church for a raffle on May 7; and
• Hearing that the water bills which were sent earlier in the day were first compared to last month and then adjusted for running water to prevent frozen lines.
The next Royalton City Council meeting will be Tuesday, April 8 at 7 p.m. at the City Complex.