By Margie Holmgren
The Hallock City Council received the 2018 audit report from Tracee Bruggeman, of Brady Martz, Thief River Falls, Minn.
Bruggeman pointed out the statement of revenues, expenditures and changes in fund balances, which showed a deficit in the general fund of $16,692 and showed an ending ongoing balance of $748,646.
In the general fund, revenues were $1,498,823. Expenditures were $191,722 for general government, $270,484 for public safety (which includes fire, police and civil defense), $195,723 for public works, $158,895 for culture and recreation, $13,482 for community development, $29,339 for airport, and $655,870 for capital outlay. Total expenditures were $1,515,515.
Cash flows showed the water fund having a balance of $51,898, sewer $68,827, gas distribution $147,982 and EDA a loss of $13,693.
A couple issues were brought up and included “the separation of duties that no individual has responsibility to execute a transaction, have physical access to the related assets and have responsibility or authority to record the transaction.”
Bruggeman noted that some of these items are difficult with a small staff but included the following:
• Errors identified in the 2017 financial statement that were corrected in current year.
• SAFER quarterly progress reports were not reviewed and approved by the city.
• SAFER quarterly progress reports were not filed timely.
• The city did not have supporting documentation for the expenditures paid by the SAFER grant.
• The balance owed to the gas distribution fund from TIF A-Medical is $4,389. Once the loan is paid in full, the city will need to decertify the TIF district.
• Inventory listings were not properly supported by invoices.
• There was no subsidiary ledger for the Meter Deposit Liability.
• The City did not pay the TIF-C Motel Developer the second half 2018 tax increment revenue.
• The Small Cities Grant fund balance is understated by $14,482.
City Administrator Angela Grafstrom stated that a lot of these items had been rectified in the 2019 fiscal year.
In other business:
• The council approved hiring Alecsys Johnson for mowing and working at the swimming pool, Zach Johnson as baseball assistant and ump, and Robert Bridges for mowing and maintenance for the summer.
• Discussed the taxi lanes at the airport but since bids came in 20 percent higher than anticipated, voted to rebid the project in 2020.
• Approved a contract with the Senior Citizens Center to pay the utilities at the center.
Council adjourned and will hold its next regularly scheduled meeting Monday, Aug. 5, 5:30 p.m.
By Margie Holmgren