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HomeMy WebLinkAboutBudget/Finance Committee Minutes 06.02.1998 MINUTES BUDGET/FINANCE COMIvIITTEE JUNE 2, 1998 4:30 P.M. OLD COURT ROOM MEMBERS PRESENT: Chairman Bud Johnson Ken Oison Don Hackmann Gay Easton Dirk Kroll Gary Temple OTHERS PRESENT: Paul St~om, CPA Andy Loebe Jim Stevens Paul explained the letter received from the Deparlment of Commerce regarding the audit comment in the 1996-97 audit report. Discussion regarding component units. Motion by Gary Temple, seconded by Dirk Kroll to recommend that the city not include the Fire Department Relief Association as a component unit of the city. Motion carded. Paul Strom and Associates, CPA's, will issue a c. onv~ted audit report Jan reported on the new air packs that will be purchased from the 199%98 and 1998- 99 budgets. The warranty is 12 years instead nf6 years and there have been improvements made to the facemask. The committee reviewed the May claims and recommended that they be paid. The overtime report for PPE 5-25-98 was reviewed. Purchase requisitions were approved as follows: GENERAL FUND Building materials for cemetery building 1,200.00 Seven-foot mower deck for cemetery 2, 700.00 Recondition motor and pump at swimming pool 570.00 Adverlising in Gazette for mechanic 740.00 Advertising in Gazette for Code Enforcement Inspector 595.00 Advertising in Gazette for Utility Plant Superintendent 675.00 Seven boxes 3 part computer paper 556.50 Patching materials and pool coating 1,310.00 Fire Department hose tests g00.00 Riding lawn mower for parks g,000.00 Trencher r~ntal in parks 500.00 61 miscellaneous tra{Txc signs 970.00 GAS TAX FUND Road material 1,610.00 CAPITAL PROJECTS FUND Server type computer for Library 6, 552.00 WATER FUND Trouble shoot and repair telemeter at reservoir 1,026.00 Eight-inch check valve welded far'rog with bolts 1,520.00 Three drums polymer CAT Floe "T" 1,365.00 Compactor rental 760.00 Road material for water line replacement 3,590.00 SEWER FUND Water tank and flushing unit 10,000.00 Insulation coating on Digester "B" 13,740.00 Televise sewer line on 100 block of South I~t Avenue 500.00 SOLID WASTE FUND .april dumping fees at Billings Landfill 6,300.00 The cosnsa-dttee will meet on June 8e' and 9t~ at 7:00 p.m. to review 1998-99 preliminary budgets. Meeting adjourned at 5:10 p.m. Respectfully Submitted, Don Hackmatm Clerk-Treasurer MONTANA DEPARTMENT OF COMMERCE Local Government Assistance Division Local Government Services-Audit Review Program 1424 9th Avenue PO Box 200501 Helena, MT 59620-0501 May 26, 1998 Phone: FAX: TDO: (406) 444-3010 (406) 444-9785 (406) 444-2978 Mayor and City Council City of Laurel P.O. Box 10 Laurel, MT 59044 Gentlemen: As required by Section 2-%522, MCA, the Department of Commerce has conducted a review of the audit repor~ covering the City of Laurel, for the year ended June 30, 1997, that was issued by Paul Strom and Associates, Certified Public Accountants. Our review disclosed that the Laurel Volunteer Fire Department Relief Association was not audited. The notes to the ~ancial statements indicate that the Association is part of the City's reporting entity. Per the Standard Audit Contract the auditor has the responsibility to ensure that a complete presentation of the City's reporting entity is made. In addition, in the Schedule of Finding and Questioned Costs, on page 30, the auditor has determined that the City is a low risk auditee. However, per the criteria established in OMB Circular A-133 the City did not qualify as a low risk auditee. One of the criteria is that the prior years financial statements for an auditee could not be qualified. The City's June 30, 1996, audit report conta'med an opinion qualification. Therefore, we have requested that Paul Strom reissue the audit report for the City. The reissued repor~ should contain audited financial statement for the Association or a qualified opinion concerning the Association, and disclose that the City did not qualify as a low risk auditee. Under the provisions of Section 2-7-522, MCA, Paul Strom has 60 days in which to reissue the repor~ with the required changes. This notification is being sent to you as required by the above section of the Montana Code Annotated. If you have any questions on this matter, please contact me at (406) 444-1467. Sincerely, THOMAS P. HAYES Audit Quality Control Reviewer cc: Paul Storm & Associates "Working Together to Make It Work" ,,,~,,~