A recent audit by the Iowa State Auditor’s Office for the City of Denison’s Fiscal Year (FY) 2023 has revealed several internal control deficiencies and compliance issues. Significant deficiencies and material weaknesses in internal control over financial reporting were identified, though no material noncompliance was found. Key issues included inadequate segregation of duties, unreviewed journal entries, and failure to reconcile utility billings and delinquent accounts. The audit also noted that property tax receipts were not tracked for their specific purposes, and personnel policies lacked clarity on exempt and non-exempt employees. The audit highlighted a material weakness in internal control for the city’s participation in the COVID-19 Airports Program and Infrastructure Investment and Jobs Act Program but found no instances of noncompliance for federal awards. The city’s response includes establishing procedures to address these deficiencies. No improper disbursements were noted in the report. Responses from city officials indicate steps will be taken to address the identified issues. A copy of the FY23 City of Denison audit is included below.
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