Council reviews audit report

RITZVILLE – The City Council met remotely Feb. 1, due to city staff calling out sick, to discuss the 2019 and 2020 Accountability and Financial Audit Report issued Jan. 24.

In the report, State Auditor Pat McCarthy recommended a change in record keeping and in information technology.

According to the report, exit recommendations are for management’s consideration. The recommendations address control deficiencies or non-compliance with laws or regulation that have an insignificant or immaterial effect on the financial statements.

In auditing credit cards, one voucher packet was found not to contain the correct invoices and receipts to support the purchases.

The recommendation is for the city to review and ensure all voucher packets are adequately supported with the correct documents.

In preparation of financial statements, 12 misstatements were found during the two-year period.

The misstatements were either under-reporting or over-reporting of figures on financial reports or in the notes to the financial reports. All errors were corrected by management.

The recommendation is for the city to ensure financial statements, schedules and notes to the financial statements are accurately prepared and based on supporting documentation.

On Jan. 4, the council approved resolution 2022-02 concerning password policies for city employees to observe in the performance of their jobs. This met the recommendation regarding Information technology.

The council discussed the options of continuing with two-year audits or switching to an annual audit. Annual audits cost an estimated $2300 per year more than the two-year cycle.

Clerk-Treasurer Julie Flyckt requested a yearly audit to make corrections in a timely manner and help with improving processes. A motion to approve a yearly audit passed by a vote pf 4-2, with council members Mike Schrag and Deed Boyer opposed.