Auditor of State Mary Mosiman released an examination report on the City of Van Meter, Iowa on Friday, March 21.
Mosiman recommended the City review its control procedures to obtain the maximum internal control possible and develop additional written policies and procedures. The City should also perform independent reviews of utility billings, collections, and delinquent accounts. A copy of the examination report is available for review in the City Clerk’s Office, in the Office of Auditor of State and on the Auditor of State’s web site at http://auditor.iowa.gov/reports/1321-0239-BL0F.pdf. A Highlight of the Detailed Recommendations for the City of Van Meter:
The Debt Service and Capital Projects Funds had deficit balances of $29,368 and $18,545, respectively. RECOMMENDATION: The City should investigate alternatives to eliminate these deficit balances to return the funds to a sound financial position. Disbursements during the year ended June 30, 2013 exceeded the amounts budgeted in the public safety, community and economic development, general government, debt service and capital projects functions. Chapter 384.20 of the Code of Iowa states, in part, "Public monies may not be expended or encumbered except under an annual or continuing appropriation." RECOMMENDATION: The budget should have been amended in accordance with Chapter 384.18 of the Code of Iowa before disbursements were allowed to exceed the budget.
The City’s ending cash balance of the Special Revenue, Urban Renewal Tax Increment Fund reported on the Levy Authority Summary did not agree with the City’s general ledger. Also, the amount reported by the City as outstanding TIF debt did not include rebate agreements. RECOMMENDATION: The City should ensure the cash balance and debt amounts reported on the Levy Authority Summary agree with the City’s records. The petty cash and change funds did not reconcile to the authorized amounts. The City’s reconciliation was not performed in a timely manner for either the Petty Cash or Change Fund. RECOMMENDATION: To provide better control and overall accountability, the petty cash and change funds should be reconciled in a timely manner.