Postville

SCHEDULE OF FINDINGS YEAR ENDED JUNE 30, 2025 Findings Related to the Financial Statements: INSTANCES OF NON-COMPLIANCE:No matters were notedMATERIAL WEAKNESSES:2025-001 Segregation of Duties Criteria - Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction form its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the City's financial statements. •Condition - One individual in the City has control over the bank deposits and posting cash receipts to the cash receipts journal. Cause - The City has a limited number of employees and procedures have not been. designed to adequately segregate duties or provide compensating controls through additional oversight of transactions and processes. Effect - Inadequate segregation· of duties could adversely affect the City's ability to prevent or detect and correct misstatements, errors or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation - We realize segregation of duties is difficult with a limited number of office employees. However, the City should be· aware of the potential for problems resulting from a lack of segregation of duties and should consistently look for ways to improve the City's internal controls. However, all incoming mail should be opened by an employee who is not authorized to make entries to the accounting records. This employee should prepare a listing of cash and checks received. The mail should then be forwarded to the accounting personnel for processing. Later, the same listing should be compared to the cash receipt records. Views of Responsible Officials and Planned Corrective Actions - The City will continue to monitor office staff so duties are segregated amongst the small staff. Conclusion-Response accepted.- 41 - ### Page 47 CITY OF POSTVILLE POSTVILLE, IOWA SCHEDULE OF FINDINGS YEAR ENDED JUNE 30, 2025 Part 11: Other Findings Related to Required Statutory Reporting:2025-A Certified Budget - Disbursements during the year ended June 30, 2025, did not exceed the amounts budgeted. 2025-B Questionable Disbursements - We noted no disbursements that may not meet the requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979. 2025-C Travel Expense - No disbursements of City money for travel expenses of spouses of City officials or employees were noted. 2025-D Business Transactions - No business transactions between the City and City officials or employees were noted. 2025-E Restricted Donor Activity - No transactions were noted between the City, City officials, City employees and restricted donors in compliance with Chapter 68B of the Code of Iowa. 2025-F Bond Coverage - Surety bond coverage of City officials and employees is in accordance with statutory provisions. The amount of coverage should be reviewed annually to ensure that the coverage is adequate for current operations. 2025-G Deposits and Investments -No instances of non-compliance with the deposit and investment provisions of Chapters 12B and 12C of the Code of Iowa and the City's investment policy were noted. 2025-H City Council Minutes - No transactions were found that we believe should have been approved in the City Council minutes but were not. 2025-I Revenue Bonds and Notes - No instances of non-compliance with the revenue bond and note resolutions were noted. 2025-J Tax Increment Financing - The Special Revenue, Tax Increment Financing (TIF) Fund properly disbursed payments for TIF loans. Also, the City of Postville properly completed the Tax Increment Debt Certificate Forms to request TIF property taxes. 2025-K Annual Urban Renewal Report - The Annual Urban Renewal Report was properly approved and certified to the Iowa Department of Management on or before December 1 as required by Chapter 384.22(2)(a) of the Code of Iowa and no exceptions were noted. - 42 -