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Chelsea city audit results in series of recommendations

February 11, 2019
By John Speer - Editor ( , Toledo Chronicle, Tama News-Herald

Based upon a periodic examination, the office of Rob Sand, Iowa State Auditor, released a series of recommendations for the City of Chelsea in an audit covering the dates of April 1, 2017 - March 31, 2018. No irregularities reporting missing or misspent funds were contained in the audit report.

The state audit results were issued on Monday, Feb. 4 including recommendations for city reports to be reconciled, library and fire department accounts to become part of city records and to eliminate deficits in two accounts.

It was also recommended property tax receipts totaling $10,233 and $11,425 in debt service were recorded in the wrong funds and need corrections.

Article Photos

Rob Sand
State Auditor

Cities of less than 2,000 population are not required to have an annual audit conducted but are subject to reviews on an occasional basis. The Chelsea population is listed at 267 persons in the period for fiscal year 2017-18 in the auditor's exam requirement listing.

Some of the recommendations covering the three pages are routine and are made in many audit reports. These include a call or segregation of duties in handling finances with the recognition this is "difficult" due to a limited number of city employees.

A summary of the report items includes:

Fact Box

Read the entire Auditor's Report:

establish procedures for bank and investment account balances, utility billings, collections and delinquent accounts; ensure future annual financial reports agree with city records

investigate alternatives to eliminate deficit balances in general fund ($7,867) and capital projects ($856) found on June 30, 2017 and return the funds to a sound financial condition

publish city council minutes in accordance with Code of Iowa requirements

library- use pre-numbered receipts issued for all collections.

stop use of a debit card for library and all city purchases to assure the proper procedure to authorize purchases and set guidelines for access.

fire department- use pre-numbered receipts for all collections and invoices and supporting documents for disbursements should be retained. Monthly reconciliation of bank account balances to book balances need to be made.

city clerk to make monthly reports to the city council

integrate the library and fire department accounts with the city account records of the city clerk



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