WORK SESSION

Tuesday, January 18, 2005 6:00 p.m.

Public Safety Building

3925 W Cedar Hills Drive, Cedar Hills, Utah

Present:           Mayor Mike McGee, Presiding

                        Council Members: Darin Lowder, Jim Perry, Melissa Willie, Jim Parker (6:18)

                        Konrad Hildebrandt, City Manager

                        Kim Holindrake, City Recorder

                        Courtney Hammond, City Meeting Transcriber

                        Rich Knapp, Rich Knapp

                        David Bunker, City Engineer

                        Others: Angie Anderson, Mark Hale

This Work Session of the City Council of the City of Cedar Hills, having been posted throughout the City and the press notified, was called to order by Mayor McGee at 6:06 p.m.

1.         Noticed agenda items for this Regular Council Meeting

City Audit - The auditors gave the City a clean, unqualified opinion—the best opinion. There were a few findings. The findings are actually recommendations, rather than incidences of non-compliance. Much of the findings were due to a change in City accounting staff. The findings include:

            •          Accounting transactions were not reported properly. It is recommended that these items be corrected.

            •          Recording of accounts payable was incorrect. It was recommended that accounts payable detail ledger reconcile with the general ledger.

            •          There were many outstanding checks that were not voided. It is recommended they be voided and reissued.

            •          Journal entries need to have proper documentation.

            •          Some of the business-type funds were not recorded in the proper manner.

            •          Expenditures were in excess of total budget. Most cities have that finding. This year’s audit model reflects some changes to comply with GASB model. Some changes included financial statements and the City now captures infrastructure.

            •          Cedar Hills uses Iwork software to calculate the expenses and schedule to maintain service on road. Cedar Hills chose a remaining service life of 9 years.

            •          Opinion applies to opinion units rather than fund type.

            •          Balance sheet now reflects assets-liabilities=equity.

            •          There are two types of funds: governmental activities and business-type activities.

            •          Capital assets are now captured on the balance sheet for the governmental activities. Land for roadway easements in the City estimated at $38,000/acre based on what the City pays for those easements.

            •          Impact fees and developer contributions are considered capital grants.

3.         This meeting was adjourned at 6:55 p.m. by Mayor McGee.

Kim E. Holindrake, City Recorder