ITEM 3.7 Annual Financial ReportF
Otsezo
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT REQUESTOR:
MEETING DATE:
Administration City Administrator/Finance Director Flaherty
June 11, 2018
PRESENTER(s) REVIEWED BY:
ITEM #:
Consent
3.7
STRATEGIC VISION
MEETS:
THE CITY OF OTSEGO: -
X
Is a strong organization that is committed to leading the community through innovative
communication.
IS A PUBLIC HEARING REQUIRED?
Has proactively expanded infrastructure to responsibly provide core services.
No
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
The City annually prepares a Comprehensive Annual Financial Report (CAFR). In accordance with Minnesota
Is a social community with diverse housing, service options, and employment opportunities.
been completed by BerganKDV, who was present at the bpm special meeting on June 11, 2018 to review
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council approve a resolution adopting the comprehensive annual
financial report for the year ended December 31, 2017.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
The City annually prepares a Comprehensive Annual Financial Report (CAFR). In accordance with Minnesota
Statutes, the financial statements within the City's CAFR must be audited on an annual basis. Said audit has
been completed by BerganKDV, who was present at the bpm special meeting on June 11, 2018 to review
the results of the audit with the City Council. A short summary on each of the three documents attached
(were received by the Council for the 6PM special meeting) is below:
CAFR
This is a comprehensive document regarding the finances of the City of Otsego and is prepared by the City.
The CAFR includes narrative discussion, financial statements, note disclosures, statistical tables, and much
more. Maybe the most important aspect of the CAFR is the Independent Auditor's Report which is issued
by BerganKDV. The audit report outlines that the City has received an Unmodified opinion, also known as a
clean opinion, and is the best opinion that can be given.
Communications Letter
This document is prepared by BerganKDV and is a blend of required communications and summary
financial analysis. This was the primary source for the discussion at the 6pm special meeting.
Reports on Compliance
This document contains reporting required by Berganl<DV on other aspects of the City's audit. This
document contains two separate components:
1) Report on Government Auditing Standards
2) Report on Legal Compliance (MN Statutes)
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2018-39
• Hard copies of the following documents were provided to the City Council at 613M Meeting. They
are available to the public on the City website.
o Comprehensive Annual Financial Report (CAFR)
o Communications Letter
o Reports on Compliance
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
Motion to approve Resolution 2018-39 adopting the comprehensive annual financial report for the year
ended December 31, 2017.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2018-39
ADOPTING THE COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2017
WHEREAS, the City annually prepares a Comprehensive Annual Financial Report (CAFR); and
WHEREAS, the CAFR contains the financial statements for the City of Otsego which have been prepared in
accordance with accounting principles generally accepted in the United States of America (GAAP), as
applied to governmental units by the Governmental Accounting Standards Board (GASB); and
WHEREAS, the financial statements have been subjected to a statutorily required audit, which has been
conducted by BerganKDV, an independent CPA firm; and
WHEREAS, BerganKDV opined that the financial statements present fairly, in all material respects, the
respective financial position of the City of Otsego for the year ended December 31, 2017; and
WHEREAS, said CAFR and the documents summarizing the audit process have been distributed to and
discussed with the City Council on June 11, 2018.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO,
MINNESOTA:
That the Comprehensive Annual Financial Report (CAFR) for the City of Otsego for the year ended
December 31, 2017, and all supporting documentation, is hereby adopted as the official financial
record for said fiscal year.
ADOPTED by the Otsego City Council this 11th day of June, 2018.
ATTEST:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
MOTION made by Council Member and SECONDED by Council Member
OPPOSED: