Fort Dodge

Schedule of Findings and Questioned Costs Year ended June 30,2025INSTANCES OF NON-COMPLIANCENo matters were noted.Part III: Findings and Questioned Costs For Federal Awards:INSTANCES OF NON-COMPLIANCE:No matters were noted.SIGNIFICANT DEFICIENCIES:No material weaknesses in internal control over the major programs were noted.Part IV: Other Findings Related to Statutory Reporting:2025-A 2025-B Certified Budget- Disbursements during the year ended June 30, 2025 exceeded the amounts budgeted in the culture and recreation and business type activities programs. Chapter 354.20 of the Code oflowa states, in part, "Public monies may not be expended or encumbered except under an annual or continuingappropriation."Recommendation- The budget should have been amended in accordance with Chapter 384.18 of the Code of Iowa before disbursements were allowed to exceed the budget. Response - The budget was amended, but as this was the initial year of budgeting on the accrual basis, there was some unanticipated adjustments for depreciation that were not properly budgeted. Conclusion- Response accepted. Questionable Disbursements - No expenditures we believe may not meet the requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979 were noted. 138 ### Page 146 2025-C2025-DCity of Fort Dodge, Iowa Schedule of Findings and Questioned CostsYear ended June 30, 2025Travel Expense - No disbursements of City money for travel expenses of spouses of City officials or employees were noted. Business Transactions- Business transactions between the City and City officials or employees are detailed as follows: Name, Title and Business Connection Dan Summers, FiremanPart owner, Mudjacking Solutions Rachael Maehl, Spouseof assistant city manager Transaction Description Repairs Contract services Amount$2.200$1 125 The above transactions do not appear to represent conflicts of interest as transactions with each individual were less than $6,000 during the fiscal year. 2025-E Restricted Donor Activity - No transactions were noted between the City, City officials, City employees ad restricted donors in compliance with Chapter 68B of the Code of Iowa. 2025-F Bond Coverage - Sure bond coverage of City officials and employees is in accordance with statutory provisions. The amount of coverage is reviewed annually to ensure that the coverage is adequate for current operations. 2025-G Council Minutes - No transactions were found that we believe should have been approved in the City Council minutes but were not. 139 ### Page 147 City of Fort Dodge, Iowa Schedule of Findings and Questioned Costs Year ended June 30, 2025Part IV: Other Findings Related to Statutory Reporting:2025-H Deposits and Investments - No instances of non-compliance with the deposit and investment provisions of Chapters 12B and 12C of the Code oflowa and the City's investment policy were noted. 2025-I Revenue Bonds and Notes -No instances of non-compliance with the water and wastewater revenue note provisions were noted. However, the broadband utility was in violation of their revenue note provisions. The broadband utility did not meet the net revenue provisions of where the net revenues should be at least 11 0% of the annual installment of interest and principle due on the debt. In addition, a sinking fund has not been set up as required by the loan agreement.IRecommendation- The City should review the broadband utility to insure that this fund meets it's revenue note debt provisions. Response- City officials are planning on refinancing these notes to meet the revenue provisions. In addition, City officials plan on setting up a sinking fund. Conclusion- Response accepted. 2025-J Financial Condition - The Special Revenue Funds, Tax Increment Financing, had a deficit balance of $2,155,257 the Local Option Sales Tax Fund had a deficit balance of$2,282, 115, and the Enterprise Fund, Broadband Utility Fund had a deficit balance of$7,886,091 at June 30,2025.Recommendation- The City should investigate alternatives to eliminate these deficits. Response - See note 12 to the financial statements to see how City officials plan to eliminate these deficits. Conclusion- Response accepted. 2024-K Urban Renewal Annual Report - The urban renewal annual report was properly approved and certified to the Iowa Department of Management on or before December 1 and no exceptions were noted.140 ### Page 148 Comment Reference2024-001'F6ir ,,OobGEf'Municlpai ''B~ilding -~ '''fng 1st 'Avenue South • Fort Dodge,Q;City of Fort Dodge Summary Schedule of Prior Audit Findings Year ended June 30, 2025Comment Status If not corrected, provide reason for finding's recurrence and planned correction action or other explanation Title Preparation of Not corrected. financial statements 141 See explanation and corrective action plan at 2024-001www.fortdodgeiowa.org ### Page 149 "'.",<,;:s; ','0)",Comment Comment Reference Title2025-001 Preparation of financial statements City of Fort Dodge Corrective Action Plan Year Ended June 30, 2025AnticiQated Corrective Action Plan Contact Person, Title, Date of Phone Number ComQletion See response and corrective Jeff Nemmers NIAaction plan at 2025-001 Finance Director 142www.fortdodgeiowa.org