Completing financial audits and establishing appropriate internal controls are essential to maintaining financial health in a community. In addition, cities are required by law to conduct annual audits and file them with the State of Iowa. The process is not only a check against fraud but also an opportunity to learn about and implement better business practices, financial and otherwise, based on the auditor’s findings.
The City chooses to contract with the Auditor of State to review our financial reports and business activities. We choose to have that review done by the Auditor of State rather than an independent CPA firm because we want only the highest authority giving us feedback.
Having completed a full audit for the 2012 fiscal year, in which we received a clean bill of financial health, we decided to utilize a less expensive “examination” procedure to review 2013. The examination cost $3,990 rather than $8,175 for a full audit. The same tests and checks against fraud are utilized however the examination report does not provide as much context as a full audit. Basically, the examination report is a simple list of areas where the City has room for improvement.
The 2013 examination listed eleven findings that the City needs to address. A number of which have already been corrected and we are actively working to address the remaining issues. However, according to Brian Brustkern who managed the examination and reported the State Auditor’s findings to the City Council, there are fewer findings to report [in Van Meter] than in other Cities of similar size. Mr. Brustkern concluded his presentation to the City Council by saying, “All in all, things in this City are in pretty good shape.”
If you have questions regarding the Auditor’s findings please direct them to City Hall.
Click here to listen to the Audit Manager’s presentation to the City Council.
Click here to read the audit report.