Under Minnesota Statues the city is obligated to do an annual audit of its books, making sure all accounting has been done appropriately with balances that balance. With this last audit cycle we completed the three year arrangement we had with the current auditor.
Looking forward, a Request for Proposal was developed and reviewed by the finance committee. The Request for Proposal is to receive proposals from accounting firms that do governmental accounting. The proposal gives them a better understanding of us while allowing them the opportunity to explaain what they can offer us. The proposal requests we receive quotes for the next three year cycle of audits.
The City of Breezy Point has a current population of about 2400. When the city population exceeds 2500, the form of accounting changes from a cash basis to modified accrual. Making that transition requires a somewhat higher level of accounting which includes additional standards that need to be met. The reporting also gives us a slightly better picture of the financial position of the city. The proposal requests that we find a way to transition slowly to this new standard. That being said the transition can occur as quickly as we want it to.
The council approved the seeking of proposals which will be received in mid August with proposals going to the City Council at the September meeting.
