A City of Bagley audit completed by the Iowa State Auditor’s Office has found multiple unsupported and improper payments recorded in Fiscal Year (FY) 2023. According to a report issued today (Tuesday), state officials initiated the audit following a citizen petition over concerns regarding payroll disbursements, approval of pay raises, and publication compliance. Auditors reviewed numerous transactions and meeting minutes that took place between July 1, 2022 and June 30, 2023. Officials noted three “improper” payroll checks issued to Bagley City Clerk Jennifer Ingles. A check dated June 9, 2023, was the same amount as previous payroll checks but did not fall within the normal payroll period, leading to auditors flagging the check. A Sept. 2, 2022 check was considered unsupported because it did not include documentation for $98.99 in mileage reimbursement. The third check, dated Feb. 27, 2023, was deemed unsupported for similar reasoning on $46.75 reimbursement for “additional funds.” Auditors also identified $361.02 in unsupported purchases on the city’s credit card during FY23. Officials did not denote if the card use was improper due to a lack of supporting documentation. They also noted issues with a pay raise for the clerk that was verbally approved by the council but did not receive written approval. The final note in the report is on the FY24 budget approval timeline, which wasn’t finalized until more than six months after the fiscal year began. The State Auditor’s Office recommended that the City of Bagley adopt additional control policies to ensure all reimbursements, pay increases, and budget approvals are documented correctly and done in a timely manner. A link to the full audit report is included below.
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