The Carroll City Council was advised during their meeting earlier this week that they may be violating state code by allocating taxpayer funds to local non-profit organizations. Officials formally accepted the Fiscal Year (FY) 2020-21 Financial Statement Audit from Feldman & Company CPAs, P.C. and received a mostly clear report. However, Jennifer Walkup, CPA, noted State Auditor, Rob Sand, is cracking down on municipal donations to private non-profit organizations.
Walkup says in her report, “We are not aware of any statutory authority for the City to donate public funds to private non-profit organizations. The City should immediately cease making such donations.” Ward 2 Councilwoman, Misty Boes, questioned why this is an issue now, considering the city’s long history of support for these organizations, such as the Carroll Area Child Care Center, Carroll County Community of Concern, New Opportunities, Animal Rescue of Carroll, and more.
City officials’ response to this recommendation is the contributions meet the public purpose definition and will properly document their reasoning for the disbursements no later than July 1. City Manager, Mike Pogge-Weaver, says it is essential they remain within the constraints of the law.
The council voted unanimously to accept the audit report. City officials indicated they intend to continue supporting local non-profit organizations in proper compliance with Iowa law. The FY21 audit report can be found included below.
______
2021_Carroll_Audit_Report
