An audit from the Iowa State Auditor’s Office for the City of Denison’s Fiscal Year (FY) 2024 budget found only minor issues concerning city operations. While the audit did not note any misappropriation of public funds, the report did show issues with internal review and reporting controls. The report did not include a review of the publicly owned Denison Municipal Utilities, as those documents were not submitted. As is common in municipal audits, Denison was criticized for its minimal segregation of duties across various offices, including city hall, the Denison Library Friends, and the Denison Volunteer Firefighters Association. No examples of misplaced funds were noted, but auditors stress that the potential for fraud or misuse increases as the number of people who manage receipts, disbursements, and bank statements decreases. The audit also noted deficiencies in reconciling delinquent accounts in utility billings, which the city indicated will be incorporated into its policies. Another common issue reported was improper reporting related to federal COVID-19 relief funds, noting that an annual project and expenditure report was not independently reviewed before submission. Auditors noted no questionable disbursements, travel issues, or deposit and investment violations. The full report from the State Auditor’s Office is included with this story on our website.
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