City of Richland procedures report released by State Auditor

On Friday, April 21, 2023, Auditor of State Rob Sand released an agreed-upon procedures report on the City of Richland, Iowa, for the period July 1, 2020 through June 30, 2021. The agreed-upon procedures engagement was performed pursuant to Chapter 11.6 of the Code of Iowa.

Sand reported eighteen findings related to the receipt and disbursement of taxpayer funds. They are found on pages 7 through 13 of this report. The findings address issues such as a lack of segregation of duties, the lack of bank and utility reconciliations, disbursements exceeding budgeted amounts, separately maintained records and questions surrounding the City’s Fire Department and fire service. Sand provided the City with recommendations to address each of the findings.

The City Council has a fiduciary responsibility to provide oversight of the City’s operations and financial transactions. Oversight is typically defined as the “watchful and responsible care” a governing body exercises in its fiduciary capacity. A copy of the agreed-upon procedures report is available for review on the Auditor of State’s website at Audit Reports – Auditor of State, www.auditor.iowa.gov/reports/file/72819/embed.