Memorandum

City of Lawrence

Finance Department

TO:	Mike Wildgen, City Manager
FROM:	Ed Mullins, Finance Director
Date:	March 2, 2006
RE:	Year End 2005 Activities

The following information is intended to summarize year end activities related to the financial position of the city as of December 31, 2005.  The information includes audit activities, a summary of year end budgetary results, and a summary of future water and sewer capital improvement projects.

Audit Activities

The Finance Department and/or the independent auditor have performed the following activities in conjunction with the audit of the 2005 financial results.

• Prepared the preliminary Schedule of Federal Financial Assistance in November 2005
• Began work paper on 2005 fixed asset additions in December 2005
• Prepared work paper on franchise, sales tax, property tax, utilities and other receivables in January 2006
• Updated Schedule of Federal Financial Assistance mid February 2006
• Auditor engaged in audit of federal financial assistance and cash and investments  mid February 2006
• Closed the fiscal year for expenditures in mid-February 2006
• Prepared trial balance for auditor review on February 21, 2006
• Prepared work paper for accounts payable in  late February 2006
• Prepared work paper for claims payable in late February 2006
• Prepared work paper for transfers and debt in late February 2006
• Completed work paper on capital assets late February 2006
• Auditor begins review of trial balance and supporting work papers end of February 2006
• Sent request for legal letter to Lathrop Gage and Gilliland & Hayes on March 1, 2006
• Auditor begins field work on capital assets in March 2006
• Auditor begins review of draft of the CAFR in April 2006
• Final CAFR without component units complete May 1, 2006

Summary of Year End Budgetary Results

Attached is the year end budgetary report for 2005.  The report provides unaudited revenues and expenses for the major funds, as well as information on investments, debt, and capital projects.

Summary of Water and Sewer CIP Financial Information

Also attached is a spreadsheet summarizing water and sewer related capital projects as they relate to the financing plan developed as part of the recent rate study, in response to a request from Vice-Mayor Amyx for information regarding cash and debt financing of CIP projects.  Note – in reviewing the wastewater project lists (“Wastewater CIP”), if more than one project is planned for a specific basin during a particular year, all projects within that basin are grouped together on the list.  Additional note – we anticipate that with the completion of the Northwest Area Sanitary Sewer Master Plan Update, some projects that are on the Wastewater CIP may be accelerated or deferred in order to address the immediate service needs of that area of the system.

If you any questions on the 2005 year end information, please let me know.