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<br />Item # 9.4. <br /> <br /> <br />MEMORANDUM <br /> <br />TO: Mayor and City Council <br /> <br />FROM: Lori Johnson, Finance and Administrative Services Director and <br />Interim City Administrator <br /> <br />DATE: November 7,2005 <br /> <br />SUBJECT: Presentation from Steve McDonald-Abdo, Eick, and Meyers <br /> <br />Councilmember Dietz and I requested that Steve McDonald of Abdo, Eick and Meyers <br />provide an update to the Council and answer questions regarding the embezzlement from <br />Elk River Municipal Utilities (ERMU). Abdo, Eick, and Meyers audits both the City and <br />ERMU. <br /> <br />As you know, even though the City has no oversight or control over the fmancial operations <br />of ERMU, the Water and Electric Departments are departments of the City like the <br />Wastewater and Liquor Departments except they are governed by a separate commission. <br />Therefore, the fmancial and management activities ofERMU are included in the City's <br />Annual Financial Report, the Management Letter, and fmancial reports and publications <br />required by the Office of the State Auditor. <br /> <br />Lori Ziemer, Assistant Finance Director, and I work closely with our auditors at year-end to <br />deal with issues related to ERMU's audit, how to treat various transactions, and to ensure <br />that ERMU's information is consistent with ours. However, we are only able to offer input <br />and make suggestions; we cannot require ERMU to make changes. It is important for the <br />Council to understand that relationship, as it ultimately affects the City. <br /> <br />Action Requested <br /> <br />This is an informational discussion so that the Council may ask Mr. McDonald questions <br />about this issue. <br /> <br />s: \ Council\Lori\2005 \AdboPresentation.doc <br />