Robins

Schedule of Findings ### Page 47 Findings Related to the Financial Statements: INTERNAL CONTROL DEFICIENCIES: 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 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 in the offices identified may have controlover the following areas for which no compensating controls exist: | Applicable Offices | | - | | (1) Cash – reconciling bank accounts, opening mail, initiating cash receipts, handling and recording cash. | City and the Robins Firefighters Association | | (2) Investments – record keeping, investing and reconciling earnings. | City | | (3) Receipts – opening mail, collecting, depositing, posting and reconciling. | City and the Robins Firefighters Association | | (4) Utility receipts – billing, collecting, depositing, posting, entering utility rates and maintaining detailed accounts receivable records. | City | | (5) Disbursements – voucher preparation, check preparation, check signing, recording and reconciling. | City and the Robins Firefighters Association | | (6) Payroll – entering payroll rates and recording vacation/sick leave. | City | | (7) Accounting system – performing all computer systems. | City | Cause – The City and the Robins Firefighters Association have a limited number ofemployees 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 and RobinsFirefighters Association’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. ### Page 48 Recommendation – Each official should review the control activities of their office toobtain the maximum internal control possible under the circumstances. The official should utilize current personnel, including elected officials, to provide additional control through independent review of financial transactions, reconciliations and reports. The independent reviews should be documented by the signature or initials of the reviewer and the date of the review. Bank reconciliation reviews should include independent verification of bank balances and reconciling items. Responses – City – We will continue to work on this comment. Robins Firefighters Association – The Robins Firefighters Association is a very smallorganization with only 19 members and a handful of officers and, therefore, it is difficult to segregate the duties of the secretary and the management of our financial records. The Robins Firefighters Association conducts a meeting almost every month and a financial report is given to the membership at each meeting that includes our current checkbook balance and any outstanding bills that are known at that time. The Robins Firefighters Association continues the practice of reconciling our checking account using the back of the monthly statements and reviewing our bank statements with the Association President and Vice President at each association meeting. All three of these officers, Secretary/Treasurer, President and Vice President, review and initial all of the monthly bank statements. Also, any expenditure of more than $200 requires approval from our membership and the minutes of our meetings reflect these actions. Conclusion – Response acknowledged. Each office should continue to review the controlactivities of their office to obtain the maximum internal control possible under the circumstances. 2025-002 Bank Reconciliations Criteria – An effective internal control system provides for internal controls related toensuring proper accounting for all funds by maintaining appropriate accounting records and reconciling bank and book balances. Independent review of bank reconciliations can help ensure the accuracy of recorded amounts. Condition – The City’s bank reconciliation included material amounts of outstandingdeposits that were due to duplicate transactions in the City’s accounting software. These duplicate transactions were from previous fiscal years and materially overstated the City’s ending cash balance. In addition, six of twelve bank reconciliations were not reviewed timely. Adjustments were subsequently made by the City to properly report these amounts in the City’s financial statements. Cause – Procedures have not been designed and implemented to ensure all accounts arereconciled and the amounts recorded in the City’s accounting records are complete and accurate. Nor have they been designed and implemented to ensure the monthly bank reconciliations are independently reviewed timely. ### Page 49 Effect – Lack of policies and procedures resulted in City employees not detecting errorsin the normal course of performing their assigned functions and material adjustments to the City’s financial statements were necessary. Recommendation – The City should establish procedures to ensure bank accounts arereconciled and the amounts recorded in the City’s accounting records are accurate. An independent person should review the bank reconciliations in a timely manner and document their review by signing or initialing and dating the monthly reconciliations. Response – The bank reconciliation will be completed in a timely manner with reviewbeing performed by the City Council Financial Coordinator on a monthly basis. In addition, the duplicate transactions will be removed from our accounting system. Conclusion – Response accepted. 2025-003 Journal Entries Criteria – Journal entries should be approved and reviewed by an independent person,and the approval and review should be evidenced by signature or initials and the date the approval or review was performed. Condition – Two of three journal entries observed had no evidence of review by anindependent person or were not reviewed timely. Cause – The City has a limited number of employees and procedures have not beendesigned to document the review and approval of journal entries Effect – Lack of independent review and approval of journal entries could adversely affectthe 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 – Journal entries should be reviewed and approved by an independentperson in a timely manner and evidenced by signature or initials and date of review or approval. Response – With the implementation of updated municipal accounting software, processsteps have been implemented requiring multiple levels of authorization for journal entries. Conclusion – Response accepted. INSTANCES OF NONCOMPLIANCE: No matters were noted. ### Page 50 Other Findings Related to Required Statutory Reporting: 2025-A Certified Budget – Disbursements during the year ended June 30, 2025 exceeded theamounts budgeted in the general government, debt service and capital projects functions prior to a budget amendment. Chapter 384.20 of the Code of Iowa states, in part, “Public monies may not be expended or encumbered except under an annual or continuing appropriation.” Recommendation – The budget should have been amended in accordance withChapter 384.18 of the Code of Iowa before disbursements were allowed to exceed the budget. Response – Future budget amendments will be completed prior to the budget being exceeded. Conclusion – Response accepted. 2025-B Questionable Disbursements – No disbursements that may not meet the requirements ofpublic purpose as defined in an Attorney General’s opinion dated April 25, 1979 were noted. 2025-C Travel Expense – No disbursements of City money for travel expenses of spouses of Cityofficials or employees were noted. 2025-D Business Transactions – No business transactions between City and City officials oremployees were noted. 2025-E Restricted Donor Activity – No transactions were noted between the City, City officials, Cityemployees 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 withstatutory provisions. The amount of coverage should be reviewed annually to ensure the coverage is adequate for current operations. 2025-G City Council Minutes – No transactions were found that we believe should have beenapproved in the City Council minutes but were not. Three meeting minutes from the year ended June 30, 2025 were not maintained, signed or published in accordance with Chapter 372.13(6) of the Code of Iowa. Recommendation – All meeting minutes should be maintained, signed and published in alocal newspaper. Response – Moving forward, City Council minutes will be compiled, submitted for review, andpublished within two weeks following a scheduled meeting. Approved minutes will be signed and filed the day following approval. Conclusion – Response accepted. 2025-H Deposits and Investments – No instances of noncompliance with the deposit and investmentprovisions of Chapters 12B and 12C of the Code of Iowa and the City’s investment policy were noted. ### Page 51 2025-I Tax Increment Financing (TIF) – The Special Revenue, Tax Increment Financing (TIF) Fundproperly disbursed payments for TIF loans and rebates. Also, the City of Robins properly completed the Tax Increment Debt Certificate Forms to request TIF property taxes. 2025-J Annual Urban Renewal Report – The Annual Urban Renewal Report (AURR) was approvedand certified to the Iowa Department of Management on or before December 1 as required by Chapter 384.22(2) of the Code of Iowa. However, the TIF obligations on the AURR for the 2013 General Obligation Bond were understated by $583,050 and overstated for the 2020 General Obligation Bond by $583,050. Recommendation – The City should ensure the debt amounts reported on the Levy AuthoritySummary agree with the City’s records. Response – Moving forward, TIF Obligations will be reconciled between the AURR and theCity’s updated software to ensure accuracy. Conclusion – Response accepted. ### Page 52 City of Robins