Washington gets unremarkable FY23 audit

WASHINGTON — A routine third-party audit of the city of Washington’s finances in fiscal year 2023 raised few red flags. Auditors found no cases of questionable disbursements, restricted donor activity, unpublicized spending, or instances of non-compliance with municipal financing rules.

In a 77-page report, reviewers said the city lacked “adequate” segregation of duties for its financial department, and should consider more internal checks and balances for that area. The finding is very common for non-metropolitan cities and counties, however, and usually shows up in audit reports for every local government in Washington County.

Faith Hinrichs is a representative from Gonewold, Bell, Khynn and Co., the public accounting firm which conducted the audit. She said the finding was an important reminder, but not a major cause for concern.

“The city has several internal controls in place,” Hinrichs said. “But due to the limited number of people that have responsibility for loads of accounting duties, this comment is necessary to make sure the board stays active, along with the staff, to continue to review and monitor the city’s control activities to prevent — or detect and correct — any misstatements.”

Otherwise, the report found only one noteworthy error. Auditors said the city spent more than it had budgeted from its debt service and general funds, and amended the budgets after the fact. State law holds that amendments must pass before such disbursements can occur.

City staff said they’d amend the year’s budget, if needed, in their written response to the finding.

Comments: Kalen.McCain@southeastiowaunion.com