Center Point

Schedule of Findings and Responses SECTION I: FINDINGS RELATED TO THE FINANCIAL STATEMENTS 2026-001 Lack of Segregation of Accounting DutiesCriteria: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 from 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: Generally, one or two individuals may have control over the following areas for which no compensating controls exist: The City Clerk, who is able to handle receipts and disbursements, also receives the bank statements and completes the bank reconciliation. The City Clerk has access to all areas of the accounting system. The City Clerk is able to make Utility Billing Adjustments without review. The Deputy Clerk is responsible for receipting cash payments and making the daily deposit. The City Clerk records journal entries without review. There was one instance noted of the City paying the same invoice twice for $4,030.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 or Potential Effect: Inadequate segregation of duties could adversely affect the City's ability to prevent or detect and correct misstatements, errors or misappropriations on a timely basis by employees in the normal course of performing their assigned functions.Recommendation: Staff will try to utilize the employees in the office to help create more segregation of duties. The staff is limited. The City can divide the duties between the few that are in the office.Views of Responsible Officials: The City continues to improve where we can in the area of segregation of duties. With limited staff available, it makes it hard to be efficient as well as consistent with our accounting functions.Conclusion: Response acknowledged. The City could utilize elected officials to provide additional control through review of financial transactions, reconciliations and reports. ### Page 56 54City of Center Point Schedule of Findings and Responses SECTION II – OTHER FINDINGS RELATED TO STATUTORY REPORTING:1. Certified BudgetDisbursements for the year ended June 30, 2026, did not exceed budgeted amounts. 2. Questionable Disbursements We noted no material expenditures which did not appear to meet the requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979. 3. Travel Expense No disbursements of City money for travel expenses of spouses of City officials or employees were noted. 4. Business Transactions No Business transactions between the City and City officials or employees the City is in accordance with Chapter 362.5(3)(j) of the Code of Iowa. 5. 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. 6. 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. 7. Council Minutes No transactions were found that we believe should have been approved in the Council minutes but were not. 8. Deposits and Investments No instances of noncompliance with the deposit and investment provision of Chapter 12B and 12C of the Code of Iowa and the City's investment policy were noted. 9. Revenue Bonds and Notes No instances of non-compliance with the revenue bond and note resolutions were noted. 10. Tax Increment Financing The Special Revenue, Tax Increment Financing (TIF) Fund properly disbursed payments for TIF loans and rebates. Also, the City of Center Point properly completed the Tax Increment Debt Certificate Forms to request TIF property taxes. 11. 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 Iowaand no exceptions were noted.