A review of the City of Breda’s Fiscal Year (FY) 2024 finances by the Office of the State Auditor reported 10 findings in city records in need of correction or additional policy protections. The audit, which covered July 1, 2023, through June 30, 2024, examined city council minutes, expenditures, bonds, tax increment financing (TIF) certifications, and more, noting six of the noted instances of non-compliance were repeated from the prior year’s audit. Segregation of duties remains a concern for the small staff at Breda City Hall. The report recommends adding independent reviews to strengthen internal controls. It also notes TIF-related concerns, including $169,410 in unremitted funds and improper debt subsidization for street, sanitary sewer, water, and street lighting improvements. Budget overruns in economic development, debt service, and general government funds, while not unusual, highlight the need for timely budget amendments. Discrepancies in financial reports, including the Annual Urban Renewal Report and Annual Financial Report, require improved accuracy and oversight. There was a single questionable disbursement in FY24, $800 for an employee Christmas party, that the report notes “may not meet the requirements of public purpose.” The report also notes a potential conflict of interest due to a $12,567 disbursement for materials and supplies to a business owned by a council member relation. None of the issues cited were considered criminal; rather, they were out of compliance with standards from the American Institute of Certified Public Accountants. The full FY24 City of Breda audit can be found included with this story on our website.
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