City of Woodland Hills

Financial Meeting Minutes

January 5, 2011

FINANCIAL MEETING

Mayor Lauritzen welcomed everyone and called to order the Financial Meeting at 7:02 pm. Notice of time, place and agenda were posted at the City Information Bulletin Board located at 200 South Woodland Hills Drive. Members of the press were notified. Those present for the meeting were: Mayor Lauritzen, Council Members Carter, Fisher, Johnson and Pray; Director of Finance Chris Helvey and Recorder Jody Stones. Councilmember Fisher led the pledge and Councilmember Carter offered the invocation.

BUSINESS AND DISCUSSION

Mayor Lauritzen reported to the council that he had a call from Milan Malkovich, resident of the City. Mr. Malkovich informed Mayor Lauritzen that the LDS Church was tearing down a church in Spanish Fork and that there were a number of items that the City might be able to use. The City was able to get a refrigerator, stove, microwave, additional chairs and tables, dishes for the kitchen, a piano and other miscellaneous items.

·  Audit Report for the 2010 Fiscal Year

Director of Finance, Chris Helvey, introduced Russ Olsen from Larson and Rosenberger. Larson and Rosenberger conducted the City’s Audit for the 2010 fiscal year.

Mr. Olsen referred the council to the larger of the two packets entitled the Annual Financial Report.

Councilmember Fisher asked why it takes so long to get an audit completed.

Mr. Olsen stated that the report is due to the State by December 30th.

Mr. Olsen reviewed with the council the Independent Auditor’s Report. (A copy of the Annual Financial Report can be obtained by contacting the City Office.) During the audit, specific things are looked at that are mandated by the State.

Councilmember Johnson had a question concerning the 2009 land note.

Director of Finance, Chris Helvey, explained that the land note is for the property around the water tanks that the City is purchasing from Don Mecham.

In reviewing the management letter, Mr. Olsen referred the council to page 3, Schedule of Findings-Current Year. (A copy of the Management Letter can be obtained by contacting the City Office.) The first few findings deal with State Compliance Issues. The first finding dealt with the Building Permit Fee Surcharge Collection Report. In the final report of the fiscal year, the surcharge to be remitted to the State was miscalculated. The result was a $103.00 underpayment to the State. This error was a decimal point miscalculation. The next finding dealt with the general fund. The general fund cannot exceed 18%of the total estimated revenue of the general fund. Under Internal Control Findings there was a deficiency in the Separation of Duties. The auditor’s recommendation was for the City, to the extent possible, segregate duties to serve as a check and balance to maintain the best control system possible. Mr. Olsen expressed that the council has the duty to review monthly financial statements and check disbursements. He expressed that internal controls help protect the innocent and discourage any temptation.

Questions were asked about the Park fund and accounts that were created for the playground equipment and an account for funds which had been donated for the project.

Mr. Olsen informed the council that the City should not make any expenditure unless it has a line item account in the budget.

Council discussed with Mr. Olsen the structure of the current budget the City is using and the ability to move funds within a category.

·  Check Disbursements and City Financials for the month of November 2010

Director of Finance, Chris Helvey, reviewed questions that were submitted via e-mail from Council Member Fisher.

Councilmember Fisher felt his question regarding PTIF funds was not answered correctly. He questioned that when the City did work on Woodland Hills Drive that the City had to borrow from other accounts to complete the project. He wondered how the City was tracking where the funds were borrowed from.

ADJOURN

Councilmember Johnson made the motion to adjourn the meeting at 8:30 pm. Councilmember Pray seconded the motion. Motion passed unanimously.

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Jody Stones, City Recorder

Approved 03-09-11