City Council Minutes 07-13-2015 Special (audit)MINUTES
SPECIAL MEETING — MONTICELLO CITY COUNCIL
Monday, July 13, 2015 — 5 p.m.
Academy Room, Monticello Community Center
Present: Brian Stumpf, Charlotte Gabler, Lloyd Hilgart, Tom Perrault, Glen Posusta
Absent: None
Others: Wayne Oberg, Jeff O'Neill, Jim Eichten (MIvIKR), Angie McIntire
1. Call to Order
Mayor Brian Stumpf called the special meeting to order at 5 p.m. in the Academy Room.
He introduced John Rued, the city's new building official.
2. Purpose of Meeting: Review the 2014 Financial Audit
Wayne Oberg introduced Jim Eichten from MMKR and explained that this is a preview
of the audit report that Jim Eichten will present at the Council meeting.
3. Workshop: Audit firm, MMI R - comments and discussion of audit
Wayne Oberg provided a slide presentation about the 2014 Financial Audit. The first
point he made was the purpose of his report: transparency and clarity. He talked about
some of the transactions that took place in 2012 which have led to improvements with the
2014 audit. Wayne Oberg noted that the city's debt has been combined to one fund, but
is broken out in the audit report. There were prior period adjustments that had to be made
in 2012 and 2013, but none in 2014. Wayne Oberg pointed out some of the interfund
loans that have been used to provide adequate cash flow in various funds of the city.
Wayne Oberg discussed the investment horizon and pointed out some of the changes that
he has made to reduce the number of long term debt maturities.
Wayne Oberg pointed out a finding from the 2014 audit. One was a review of accounts
payable where it was found that one payment in the sampling of 40 was made more than
35 days after the invoice was received. Wayne Oberg explained that this involved an
invoice from Mark Pultusker, who turned it into the city in October 2013. The city was
waiting for additional documentation from Mark Pultusker to confirm that the purchase
was actually made. The documentation was pursued a number of times but not received.
Eventually, authorization was given in March to pay the invoice. Wayne Oberg noted
that FiberNet invoices tend to be more problematic, and staff will make efforts to reduce
such delays. Wayne Oberg noted that the audit report itself was very clean.
Glen Posusta commented on a sentence in the introduction of the audit report referring to
the Xcel plant being a small carbon footprint. Jeff O'Neill asked about the city's current
bond rating. Wayne Oberg noted that the city will be going through a bond sale later this
year and will need to go through another bond rating call. He does not anticipate any
further lowering of the city's rating, but could not predict what will happen at that time.
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Jim Eichten reviewed the other finding that was noted in the Management Report. Of
timesheets that were reviewed by the auditors, there were several that did not have the
correct verification/signature from the employee. Wayne Oberg pointed out that those
are likely due to timesheets that were turned in prior to the time that this problem was
brought to the attention of city staff and corrected in early 2014.
4. Adjournment
GLEN POSUSTA MOVED TO ADJOURN THE SPECIAL MEETING AT 5:24 P.M.
TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0.
Recorder: Catherine M. Shuman
Approved: July 27, 2015
Attest:
dministrator
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