Laserfiche WebLink
<br />RUG 23 '93 09:47RM GMI TRX PEPRRTMENT 612 540 3250 <br /> <br />P.2/3 <br /> <br /> <br />. STATE OF MINNESOTA <br />OFFICE OF THE STATE AUDITOR <br /> <br />SUITE 400 <br />525 PARK STREET <br />SAINT PAUL 55103 <br /> <br />(612) 296-2551 <br /> <br />August 17, 1993 <br /> <br />The Honorable Hank.Duitsman <br />City of Elk River <br />12354 Ridgewood Dr <br />Elk River,. MN SS330 <br /> <br />Dear Mayor Duitsman: <br /> <br />We annually review the reporting forms and Schedule I, n &, IU's for all relie! <br />associations. We are currently unable to certify the Elk River Relicf Association for State fire <br />aid. <br /> <br />e <br /> <br />In this process of this review I rea4 minutes of the meetings for the past 'several years <br />which contained the approval for the benefit in~r~. The error:s contained in the Schedule I, <br />II & III move the city from a voluntary contribution by the city in the amount of $19,000 to a <br />mandatory contribution of $6,101 which must be paid prior to year end. <br /> <br />While I am cOnfident based upon your minutes that $19,000 will be contributed, it appears <br />that the city has not had mandatory contributions in the past. On July 26, 1993, the city <br />approved a further increase to 52,200. The minutes indicate that no mandatory city contribution <br />will be due in 1994. We believe this may be false assumption. ' <br /> <br />The errors on the Schedule I, II & In for the 1993 contribution probably are recurring for <br />the 1994 contribution. Please furnish our Office a copy of the 1993 certification for the 1994 <br />contribution. This was fued with your council at the time of the benefit increase request. Given <br />the currently lower interest rates and the average e.mlings yield of 4% on funds in 1992 several <br />conclusions are warranted. ' . <br /> <br />111e Schedule I &, II filed in 1993 for 1994 should be reviewed 'for accuracy. In addition, <br />the actuarial assumptions include a 5 % earnings yield. In 1991 the funds earned 18 %, in 1992 <br />the funds earned 4 %. <br /> <br />e <br /> <br />The auditQrs for the. Relief Association have not included the suggested GASB footnote <br />related to historical information. We are therefore unable to assess prior years. You may wish <br />to examine the earnings yield over ten years to determine if the fund is earning at least the <br />actuarial assumed rate. You may also wish to recommend that the Relief Association request the <br /> <br />@ Prln[ed on Recy<:lccl Paper <br /> <br />~<J) <br /> <br />An Equal Opportunity Employer <br />