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5.1. SR 12-10-2001MEMORANDUM TO: Mayor and City Council FROM: DATE: Pat Klaers, City Administ~ December I 0, 2001 ~ SUBJECT: GFOA Finance Award Item 5.1. It is with great pleasure that I notify the City Council that the city of Elk River has received the Certificate of Achievement (COA) for Excellence in Financial Reporting for the 2000 Fiscal Year. The COA plaque acknowledging this award will be received in about two months. The COA is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to award a COA, the governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report (CAFR) whose components conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. The COA is valid for a one year period. The city of Elk River has received the COA for twelve consecutive years ending December 31, 2000. This item is on the agenda as information only and no action is necessary from the City Council except to acknowledge receipt of the award. The city receiving this award is due to the efforts of the entire finance department staff including: Joan Frick, Sr. Accounting Clerk; Lauren Wipper, Payroll Clerk; Lori Ziemer, Assistant Finance Director; and Lori Johnson, Finance Director. Responsibility for preparation of the CAFR lies with Lori Ziemer and Lori Johnson. A StarNeuas "photo opportunity" of the entire department will hopefully take place once the plaque has been received. Attached is some COA information including a news release and some pages from the booklet that was provided to the city. GOVERNMENT FINANCE OFFICERS ASSOCIATION 180 North Michigan Avenue, Suite 800, Chicago, Illinois 60601 312/977-9700 · Fax: 312/977-4806 November 2, 2001 For information contact: NEWS RELEASE Stephen Gauthier (312) 977-9700 (Chicago)--The Certificate of Achievement for Excellence in Finan- cial Reporting has been awarded to: City of Elk River, MN by the Government Finance Officers Association of the United States and Canada (GFOA) for its comprehensive annual financial report (CAFR) . The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplish- ment by a government and its management. An Award of Financial Reporting Achievement has been awarded to the individual(s), department or agency designated by the government as primarily responsible for preparing the award- winning CAFR. This has been presented to: Finance Department, City of Elk River The CAFR has been judged by an impartial panel to meet the high standards of the program including demonstrating a construc- tive "spirit of full disclosure" to clearly communicate its financial story and motivate potential users and user groups to read the CAFR. The GFOA is a nonprofit professional association serving approximately 14,000 government finance professionals with offices in Chicago, Illinois, and Washington, D.C. - 30 - WASHINGTON OFFICE 1750 K Street, N.W., Suite 650, Washington, DC 20006 202/429-2750 · Fax: 202/429-2755 CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING 2000 RESULTS The Certificate of Achievement for Excellence in Financial Reporting (Certificate of Achievement) is an award designed to recognize and encourage excellence in irmancial reporting by state and local governments. The attainment of a Certificate of Achievement represents a significant accomplishment for a government and its management. The Certificate of Achievement for Excellence in Financial Reporting Program (Certificate Program) was established by the Government Finance Officers Association (GFOA) in 1945. The GFOA instituted the program to encourage all government units to prepare and publish an easily readable and understandable comprehensive annual financial report (CAFR) covering all funds and financial transactions of the government during the fiscal year. The GFOA believes that governments have a special responsibility to provide the public with a fair presentation of their financial affairs. CAFRs go beyond the requirements of generally accepted accounting principles (GAAP) to provide the many users of govemment financial statements with a wide variety of information useful in evaluating the financial condition of a government. Securities Marketing A id: Clarity: Comparability: recognized award, and its attainment represents a significant accomplishment by a government unit and its management. Reports qualifying for a Certificate of Achieve- ment provide a detailed vehicle by which market analysts, investors, potential investors and others may assess the relative attractiveness of a government unit's securities compared to alternative investment opportunities. CAFRs satisfying the Certificate Program's requirements are likely to be free of ambiguities and potentially misleading presentations. Since CAFRs qualifying for a Certificate of Achievement employ standardized terminology and formatting conventions, comparisons from one year to the next and among different government units are facilitated. To be eligible for a Certificate of Achievement, a report must be the published CAFR of a unit of government, a public college or university, a public employee retirement system, or a governmental investment pool. Eligible CAFRs must include general purpose financial statements presented in conformity with GAAP. These ~ports are also required to have been audited in accordance with generally accepted auditing standards. To earn a Certificate of Achievement, a CAFR should give a clear and thorough view of the government's finances. Award-winning reports should enhance the reader's understanding of the information required by GAAP for fair presentation of the financial statements, be efficiently organized and adhere to certain generally accepted terminology and formatting conventions. The Certificate Program provides participants with extensive technical reference material on governmental accounting and financial reporting theory. This material provides finance officials with the tools they need to improve their financial reporting techniques. Benefits of the Certificate of Achievement review. The growth in the Certificate Program has been substantial. Based on recent trends, steady growth is anticipated to continue. More and more governments are recognizing the benefits and significance of a program review. Some of the benefits likely to be realized by a government unit which submits its CAFR to the Certificate Program's review process include: Education: Government units participating in the Certificate Program are provided with extensive technical accounting and financial reporting reference materials. Officials submitting CAFRs to the Certificate Program's review process also are provided with a confidential list of detailed comments and suggestions for improving their financial reporting techniques. Recognition: The Certificate of Achievement is a nationally Completeness: The financial statements, supporting schedules, statistical tables and narrative explanations required for a Certificate of Achievement help to assure that all fiscal data are presented that are needed by the many persons and groups with a legitimate interest in the financial affairs of a government unit. These groups include gov- erning boards, investors and creditors, grantor resource providers, taxpayers and others. To participate in the Certificate Program, government units must complete an application form and submit three copies of their CAFR, with the appropriate fee, to the GFOA for review by the Certificate Program's Special Review Committee. Applications can be obtained from the GFOA's Certificate Program staff in Chicago (312/977-9700) or from the "Forms" section of GFOA's website at www.gfoa.org. Submissions must be postmarked within six months of the government's fiscal year end. The following list identifies all of the governments that were successful in obtaining a Certificate of Achievement for CAFRs with fiscal years that ended in 1999. The governments currently holding certificates that have been recognized the most times in each state or jurisdiction are in bold italics. Special note is given to those governments that prepared a CAFR in accordance with the new financial reporting model established by Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments and won the Certificate of Achievement for that CAFR. A listing of these governments precedes the complete list of winners to recognize their accomplishment. Also, a # sign preceding the government's name indicates they received the GFOA's Distinguished Budget Presentation Award for their fiscal period beginning in 1999. MINNESOTA Albert Lea 11 Anoka #Anoka County Austin Blaine #Bloomington (29 awards) #Blue Earth County Brainerd Breckenridge Brooklyn Center #Brooklyn Park #Burnsville Carver County Chanhassen Chaska Columbia Heights #Coon Rapids Cottage Grove Crystal #Dakota County Deephaven Detroit Lakes Dilworth #Duluth Duluth Teachers' Retirement Fund Association Eagan East Grand Forks #Eden Prairie Elk River Fairmont Falcon Heights Faribault Fergus Falls Fridley Golden Valley Goodview Grand Rapids Grand Rapids Public Utilities Commission Hastings, Dakota County #Hennepin County Hopkins Hugo Hutchinson Inver Grove Heights Lakeville Lino Lakes Luverne Mahtomedi Mankato Maple Grove #Maplewood Minneapolis Minneapolis Community Devlopment Agency Minneapolis Employees' Retirement Fund Minneapolis Library Board #Minneapolis-Saint Paul Metropolitan Airports Commission Minnesota Public Employees' Retirement Association Minnesota Teachers' Retirement Association Minnetonka Moorhead Mora Morris Mound New Brighton New Hope New Ulm North Mankato North Saint Paul Oakdale Olmsted County Orono Plymouth Ramsey #Ramsey County Rice County #Richfield #Robbinsdale Rochester Rosemount #Roseville #Saint Cloud Saint Louis County Saint Louis Park Saint Paul Saint Paul Housing and Redevelopment Authority Savage Shakopee Sherburne County Shoreview #Shorewood South Saint Paul State of Minnesota Stillwater Suburban Hennepin Regional Park District Twin Cities Area Metropolitan Council Wadena Waseca #Washington County Wayzata West Saint Paul Western Lake Superior Sanitary District #White Bear Lake #White Bear Township Winona #Worthington Reports Submitted and Certificates Awarded for Fiscal Years Ended in 1997, 1998 and 1999 Active Special Review Committee Members During Years Ended December 31, 2000 and 1999 FY 97 Reports FY 98 Reports FY 99 Reports 2000 1999 Processed in 1998 Processed in 1999 Processed in 2000 Active SRC Active SRC Submissions Awards Submissions Awards Submissions Awards Members Members Alabama 15 14 16 14 15 15 1 2 Alaska 21 21 22 21 26 26 4 4 American Samoa 1 1 1 1 1 1 0 0 Arizona 112 112 118 116 109 108 13 11 Arkansas 9 8 8 8 9 9 0 2 Califomia 270 264 293 282 303 296 55 54 Colorado 96 92 100 99 107 107 19 21 Connecticut 51 49 54 53 55 53 11 11 Delaware 7 6 6 6 8 8 4 3 District of Columbia 3 3 3 3 3 3 9 6 Florida 204 202 212 209 211 210 57 58 Georgia 79 73 82 79 87 83 15 16 Hawaii 6 6 6 6 6 6 1 1 Idaho 14 13 14 14 13 13 3 2 Illinois 190 187 197 195 204 202 37 36 indiana 26 25 26 26 27 27 2 2 Iowa 39 38 36 36 40 40 8 6 Kansas 36 35 37 37 40 38 9 7 Kentucky 19 18 20 18 20 20 4 4 Louisiana 39 39 44 42 45 43 8 6 Maine 8 8 10 9 10 10 6 5 Maryland 36 35 37 36 40 38 8 13 Massachusetts 8 8 9 9 10 10 9 9 Michigan 74 73 79 78 84 80 14 11 Minnesota 103 102 105 105 105 105 28 33 Mississippi 7 7 7 7 7 7 0 0 Missouri 66 65 70 67 70 67 13 12 Montana 11 10 12 11 12 12 3 4 Nebraska 6 6 7 7 7 7 3 3 Nevada 25 22 23 23 24 23 5 7 New Hampshire 6 6 8 8 8 8 3 3 New Jersey 10 10 12 12 11 10 4 4 New Mexico 6 6 6 6 6 6 2 3 New York 56 52 62 59 66 64 23 20 North Carolina 150 148 150 146 154 153 29 26 North Dakota 7 7 9 9 9 9 10 10 Ohio 228 225 243 243 262 262 78 67 Oklahoma 24 23 26 25 25 25 8 6 Oregon 96 96 101 98 98 98 12 11 Pennsylvania 54 51 56 53 57 57 11 13 Puerto Rico 7 7 8 7 9 8 0 1 Rhode Island 7 7 8 5 7 6 1 1 South Carolina 62 61 67 65 68 68 14 10 South Dakota 5 5 5 5 5 5 0 0 Tennessee 36 36 36 36 39 38 8 7 Texas 295 287 305 300 309 302 39 42 Utah 34 33 34 34 34 34 4 4 Vermont 0 0 0 0 0 0 0 0 Virginia 89 84 92 90 95 95 14 16 Washington 55 55 58 57 55 51 12 11 West Virginia 6 6 7 7 8 8 4 3 Wisconsin 40 40 41 40 43 42 9 11 Wyoming 11 11 10 10 12 11 3 3 TOTAL 2865 2798 2998 2932 3078 3027 637 621 Submissions and Awards include ineligible and stub reports where applicable 24 Alabama ~,.erican Samoa Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho illinois indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi ~uri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington Virginia Wisconsin Wyoming Total Certificates Awarded For Reporting Entity Fiscal Years Ended in '1999 and Processed by GFOA in Calendar Year 2000 School Council of ColleRes & Municipal County District Enterprise Government State PEnS Universities 12 0 0 1 0 1 1 0 10 7 6 I 0 0 2 0 0 0 0 0 0 0 I 0 29 4 59 3 1 0 6 3 7 0 0 0 0 1 1 0 198 20 0 34 1 1 17 0 37 19 21 10 0 1 6 0 45 0 1 2 0 1 0 0 3 1 0 1 0 1 1 0 0 0 0 2 0 1 0 0 140 33 4 20 1 0 5 0 46 17 5 5 1 0 1 0 1 3 0 0 0 1 1 0 5 4 2 0 0 1 1 0 108 10 15 13 0 1 15 6 14 2 1 5 1 1 0 0 24 4 6 2 0 1 1 1 24 5 4 2 0 0 2 0 12 2 0 2 0 1 2 0 8 5 20 3 0 0 3 0 8 1 0 1 0 0 0 0 12 11 4 1 0 1 6 2 6 0 0 2 0 1 1 0 51 17 3 2 0 1 5 0 81 11 0 3 1 1 4 0 $ 0 0 0 0 1 1 0 41 7 3 8 1 0 4 0 5 3 1 0 0 1 1 0 5 0 0 0 0 1 0 1 8 2 1 3 0 1 1 0 5 0 0 1 0 1 I 0 1 0 6 2 0 1 0 0 3 2 1 0 0 0 0 0 29 10 10 5 0 1 7 0 65 51 28 4 0 1 1 2 5 1 0 0 0 1 2 0 101 42 88 12 1 1 6 0 13 2 1 4 0 1 4 0 35 11 24 8 4 1 1 5 23 13 13 3 0 1 3 0 0 0 0 2 0 1 0 1 5 0 0 1 0 0 0 0 25 15 13 5 0 1 1 8 4 0 0 0 0 0 1 0 24 7 0 5 0 1 1 0 150 44 53 19 4 1 8 6 20 3 6 3 0 1 1 0 0 0 0 0 0 0 0 0 37 24 8 18 0 1 6 0 26 8 4 8 0 1 2 0 0 0 0 6 0 1 0 0 20 9 1 3 0 1 0 7 7 1 0 1 0 0 1 0 1543 431 412 236 16 39 135 42 Other 0 o 0 3 o 25 13 4 1 0 7 8 0 0 34 3 1 1 1 4 0 1 0 1 4 0 3 1 0 7 0 0 0 2 1 0 11 0 9 1 4 0 0 0 0 17 0 0 1 2 1 1 1 173 Total 15 26 1 lO8 9 296 lO7 53 8 3 21o 83 6 13 202 27 38 20 lO 38 lO 80 lO5 7 67 12 7 23 8 lO 6 64 153 9 262 25 98 57 8 6 68 5 38 3o2 34 o 95 51 8 42 11 3027 Total Governmental Units and Submitters Total cities and counties per 1997 census of governments Total submissions by cities, counties and states for fiscal years ended in 1999 Percentage of total cities, counties and states submitting Cities* Population Units Submitted Percent 1 - 9,999 32,326 259 0.80% 10,000 - 24,999 2,125 473 22.26% 25,000 - 49,999 860 374 43.49% 50,000- 99,999 435 270 62.07% 100,000 - 199,999 168 116 69.05% 200,000 or more 86 80 93.02% Total 36,000 1,572 4.37% % of all cities over 200,000 % of all cities over 100,000 % of all cities over 50,000 % of all cities over 25,000 % of all cities over 10,000 % of all cities 93.02% 77.17% 67.63% 54.23% 35.74% 4.37% * "Cities" includes cities, municipalities, villages, and townships Counties Population Units Submitted 1 - 9,999 700 2 10,000 - 24,999 886 21 25,000 - 49,999 618 48 50,000 - 99,999 379 97 100,000 - 249,999 273 130 250,000 or more 187 142 Total 3043 440 Percent 0.29% 2.37% 7.77% 25.59% 47.62% 75.94% 14.46 % % of all counties over 250,000 % of all counties over 100,000 % of all counties over 50,000 % of all counties over 25,000 % of all counties over 10,000 % of all counties 75.94% 59.13% 43.98% 28.62% 18.69% 14.46% States** Units Submitted Percent 52 42 80.77% .... States" includes the District of Columbia and the Commonwealth of Puerto Rico 30 City and County Reports Submitted (including ineligible and stub reports) for Fiscal Years Ended in 1999 Compared to Total Cities and Counties cities Counties Units* Submitters % Submitted Units* Submitters Alabama 446 12 2.69% 67 0 Alaska 149 10 6.71% 12 7 Arizona 87 30 34.48% 15 4 Arkansas 491 7 1.43% 75 0 California 471 203 43.10% 57 22 Colorado 269 37 13.75% 62 19 Connecticut 179 47 26.26% 0 0 Delaware 57 3 5.26% 3 1 Florida 394 140 35.53% 66 33 Georgia 535 49 9.16% 156 18 Hawaii 1 1 100.00% 3 3 Idaho 200 5 2.50% 44 4 Illinois 2721 109 4.01% 102 10 Indiana 1577 14 0.89% 91 2 Iowa 950 24 2.53% 99 4 Kansas 1997 25 1.25% 105 5 Kentucky 434 12 2.76% 119 2 Louisiana 302 8 2.65% 60 6 Maine 489 8 1.64% 16 1 Maryland 156 12 7.69% 23 12 Massachusetts 351 6 1.71 % 12 0 Michigan 1776 53 2.98% 83 19 Minnesota 2648 81 3.06% 87 11 Mississippi 295 5 1.69% 82 0 Missouri 1268 42 3.31% 114 7 Montana 128 5 3.91% 54 3 Nebraska 990 5 0.51% 93 0 Nevada 19 8 42.11% 16 2 New Hampshire 234 5 2.14% 10 0 New Jersey 567 1 0.18% 21 0 New Mexico 99 3 3.03% 33 2 New York 1544 30 1.94% 57 10 North Carolina 527 66 12.52% 100 51 North Dakota 1704 5 0.29% 53 1 Ohio 2251 101 4.49% 88 42 Oklahoma 592 13 2.20% 77 2 Oregon 240 35 14.58% 36 11 Pennsylvania 2569 23 0.90% 66 13 Rhode Island 39 6 15,38% 0 0 South Carolina 269 25 9.29% 46 15 South Dakota 1265 4 0.32% 66 0 Tennessee 343 25 7.29% 93 7 Texas 1177 155 13.17% 254 45 Utah 230 20 8.70% 29 3 Vermont 286 0 0.00% 14 0 Virginia 231 37 16.02% 95 24 Washington 275 30 10.91% 39 8 West Virginia 232 0 0.00% 55 0 Wisconsin 1849 20 1.08% 72 10 Wyoming 97 7 7.22% 23 1 Total 36000 1572 4.37% 3043 440 % Submitted 0.00% 58.33% 26.67% 0.00% 38.60% 30.65% 0.00% 33.33% 50.00% 11.54% 10o.00% 9.09% 9.80% 2.20% 4.04% 4.76% 1.68% lO.OO% 6.25% 52.17% 0.00% 22.89% 12.64% 0.00% 6.14% 5.56% 0.00% 12.5o% 0.00% 0.00% 6.06% 17.54% 51.00% 1.89% 47,73% 2.60% 30,56% 19.70% 0.00% 32.61% 0.00% 7.53% 17,72% 10.34% 0.00% 25.26% 20.51% 0.00% 13.89% 4.35% 14.46% * Source: 1997 Census of Governments Cities includes cities, municipalities, villages, and townships