DIKE — A state auditor’s report has taken the city to task for its financial record keeping.
Iowa State Auditor Rob Sand released a report Wednesday covering a review of Dike city government for the fiscal year ending June 30, 2018.
The report found multiple issues where the city failed to balance its books or record financial records properly throughout the year along with several other findings related to noncompliance with state laws on city government reporting.
“The City Council has a fiduciary responsibility to provide oversight of the city’s operations and financial transactions,” the audit report stated. “Oversight is typically defined as the ‘watchful and responsible care’ a governing body exercises in its fiduciary capacity.
“Many of the findings included in this report indicate the City Council needs to exercise additional fiduciary oversight,” it concluded.
Auditors noted the report was intended only to provide recommendations to the city on improving its processes.
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“That’s part of their job, to help us find better ways to do things,” said Mayor Mike Soppe, noting the state does annual examinations between the full-blown audits conducted every four years.
“There were some clerical and bookkeeping errors,” Soppe said. “There wasn’t any wrongdoing or anything the city was doing to be misleading.”
Among the many findings, auditors found the city’s general ledger balance was not reconciled with actual bank balances; inaccurate amounts were included in the 2018 financial report; ambulance billings were not reconciled; and the city did not properly track whether local-option sales tax funds were spent in compliance with voters’ wishes.
Despite those issues and multiple other findings in the report, auditors cited just one questionable disbursement of city funds that may not meet the definition of a public purpose.
That $49 payment involved buying flowers for a funeral, which exceeded the city policy limiting the payment to $40.
The full report is available on The Courier’s website at wcfcourier.com.