The Certified Public Accounting firm of Gronewold, Bell, Kyhnn & Co., P.C., in Atlantic, report an audit of the financial statements for the City of Atlantic, has been completed. The Audit Covered the year that ended June 30, 2017. Copies of the Audit Report are available for inspection at the offices of the City Clerk, and the State Auditor.The report noted:

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis.  The City Council is aware of this lack of segregation of duties, but says it is not economically feasible for the City to employ additional personnel for this reason. The City Council will continue to act as an oversight group. The City’s response was accepted.

The report also noted disbursements during the year ended June 30, 2017 exceeded the amounts budgeted in the general government and debt service functions. A chapter of the Iowa Code states, in part, “Public monies may not be expended or encumbered except under an annual or continuing appropriation.” This appears to be due to employee oversight. Recommendation: The budget should have been amended in accordance with the Code of Iowa, before disbursements were allowed to exceed the budget.  The City responded: The budget will be amended in the future, if applicable. The response was accepted.

And, during the audit, the Auditor did not note any disbursements that did not meet the requirements of public purpose as defined in an Attorney General’s opinion dated April 25, 1979.  Also, no expenditures of City money for travel expenses of spouses of City officials and/or employees were noted. A PDF of the report can be found here: https://auditor.iowa.gov/sites/default/files/audit_reports/1720-0128-C00F.pdf