|Public Release Date: April 24, 1998||No. 98-26|
The Metropolitan Sports Facilities Commission is a component unit of the Metropolitan Council. Its primary responsibility is the operation of the Hubert H. Humphrey Metrodome sports facility (the Metrodome).
The financial statements show total commission assets of over $87 million as of December 31, 1997. Nearly $64 million of property and equipment comprises the largest portion of the commission's assets; cash and investments accounted for most of its other assets. The financial statements show that the commission had equity of $52 million as of December 31, 1997: $17 million in contributed capital, $13.2 million of reserved retained earnings, and $21.8 million of unreserved retained earnings.
The commission owed total liabilities of about $36 million at December 31, 1997, with about $34.6 million representing principal and accrued interest on its long-term debt. As indicated in the notes to the financial statements, the commission defeased the entire long-term debt amount in March 1998.
As required by Minn. Stat. Section 473.595, Subd. 5, we have conducted an audit of the commission's financial statements for the year ended December 31, 1997. We also reviewed the internal control structure of the commission and tested the commission's compliance with significant finance-related legal provisions.
Based on our examination, we concluded that the commission's financial statements were fairly presented in conformity with generally accepted accounting principles. We issued an unqualified opinion on the statements for the year ended December 31, 1997. In the area of internal controls, we found that the commission did not have signed contracts with some of its service providers. We found no instances of noncompliance with finance-related legal provisions.
In its response to the audit report, the commission indicated that it agrees with the finding and is working to resolve the issues.