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City of Lonsdale has ‘best audit so far’
The City of Lonsdale received another clean bill of health at the regular meeting of the city council held Thursday, March 28. Audit Manager Joel Stencel of Eide Bailly LLP delivered the 2012 audit, stating that the city's financial position is "incredibly strong". He concluded by saying that this was the best audit so far.
A memo from City Administrator Joel Erickson summarized the audit report showing the balances of the various funds. He stated that the financial strength of the city was due to the General Fund balance being in excess of 100 percent of expenses. Operating fund balances are:
General Fund: $256,827
Water Fund: $139,694
Sewer Fund: $231,775
Liquor Store Fund: $54,612
Bonds Payable: $412,490,000 with over 70 percent of debt to be paid off in 10 years.
Mayor Tim Rud thanked city staff and council members for the time and energy put into budget meetings held throughout the year.
Also as part of the audit, Stencel pointed out deficiencies he found in the city's financial process, specifically: No system to provide for the preparation of the financial statements; material audit adjustments were made; and segregation of duties. He explained that these deficiencies are common for cities with staff the size of Lonsdale's.
A special meeting of the council is scheduled for 6 p.m. on Thursday, April 11, to discuss the status of the proposed business park. A regular meeting will follow at 7 p.m.