FY 2017 - 2018 Audit

CITY OF SPENCER SCHEDULE OF FINDINGS - Continued FOR THE YEAR ENDED JUNE 30, 2018

Part II: Other Findings Related to Required Statutory Reporting

II-A-18 Certified Budget - Disbursements during the year ended June 30, 2018 exceeded the amounts budgeted in the debt service function. Chapter 384.20 of the Code of Iowa states in part that public monies may not be expended or encumbered except under an annual or continuing appropriation.

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 City will make an effort to amend the budget before disbursements are exceeded, if applicable in the future.

Conclusion - Response accepted.

II-B-18 Questionable Disbursements - No expenditures that did not meet the requirement of public purpose as defined in an Attorney General's opinion dated April 25, 1979, were noted.

II-C-18 Travel Expense - No expenditures of the City for travel expenses of spouses of City officials or employees were noted.

11-0-18

Business Transactions - Business transactions between the City and City officials or employees are detailed as follows:

Transaction Description

Name, Title and Business Connection Kevin Robinson, Mayor, Partial owner of All Star Pro Golf

Amount

$ 407

Supplies

Leann Jacobsen, Council Member, Owner of The Bear

674

Meeting

The transactions do not appear to represent a conflict of interest since total transactions with each individual were less than $1,500 during the fiscal year.

II-E-18 Bond Coverage - Surety bond coverage of City officials and employees is in accordance with statutory provisions. The amount of coverage should be reviewed annually to ensure that the coverage is adequate for current operations.

II-F-18 Council Minutes - No transactions were found that we believe should have been approved in the Council minutes but were not.

II-G-18 Deposits and Investments - We noted no instances of noncompliance with the deposit and investment provisions of Chapter 12B and 12C of the Code of Iowa and the City's investment policy.

II-H-18 Revenue Notes - No instances of noncompliance with the revenue bond and note resolutions were noted.

11-1-18

Financial Assurance - As of June 30, 2018, the City has demonstrated financial assurance for closure and postclosure care by establishing a local government dedicated fund as provided in Chapter 567.113.14(6) of the Iowa Administrative Code.

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