Auditor of State Rob Sand released an agreed-upon procedures report on the City of Batavia, Iowa, for the period January 1, 2025 through December 31, 2025, revealing sixteen findings related to the receipt and disbursement of taxpayer funds.
The findings cover a wide range of financial management concerns, including a lack of segregation of duties, improper bank reconciliations, and the library department maintaining a separate bank account entirely outside the city’s accounting records and city council oversight. City council meeting minutes were delivered to the newspaper late on multiple occasions and failed to include required information. Disbursements in certain functions exceeded budgeted amounts without required amendments.
Utility billing issues were also flagged, including a failure to reconcile billings and delinquent accounts, utility bills not being sent for November and December 2025, and utility rates being charged that did not match those approved by city ordinance. Additional findings included problems with petty cash management, investment records, and an Annual Financial Report containing several discrepancies.
In disbursements, invoices were missing for some transactions, sales tax was improperly paid, seven transactions were not approved by the city council, and all nine employee timesheets reviewed had not been approved before payroll was prepared. The city’s use of a debit card was flagged, and a $60 payment to a florist for funeral flowers was identified as a questionable disbursement that may not meet the public purpose requirement under Iowa law.
Sand provided recommendations to address each finding. The full report is available on the Auditor of State’s website.
Photo via Auditor of State.
