Nine findings were reported in the audit conducted for the City of Sigourney. The Office of the State Auditor shared that the city’s receipts totaled $4.2 million for the year ending June 30, 2024, which showed a 12 percent decrease. In addition, the disbursements were $4.27 million, a 21.7-percent decrease from the prior year.

The findings related to the financial statements included internal control deficiencies, for which it is recommended that the city review control procedures to address the limited options for segregation of duties. Utility and bank reconciliations should be reviewed by a member of the City Council or an independent person monthly. The Friends of Sigourney Public Library is a volunteer organization, and it was noted that there is inadequate segregation of duties and it is recommended that independent reviews should be documented.

Three conflicts of interest were found with transactions for snow removal, electrical work, and landscaping that totaled $61,859. The business owners were family members of council members and did not have competitive bids for the work. The audit recommends the city to consult legal counsel to determine the disposition of the matter.

In regards to revenue notes, it is recommended that the city ensure the net operating receipts for the enterprise sewer fund are sufficient to make the required debt service payments and comply with the sewer revenue note resolution.

Recommendations were also made related to tax increment financing, also known as TIF. TIF collections were found to be in excess of the TIF certified debt and Iowa Code requires excess balance to be remitted to the County Treasurer and allocated to respective taxing districts. The City is to review procedures to ensure TIF debt is properly certified and consult legal counsel regarding the matter. City officials told the auditors that they will review procedures to ensure future TIF debt is properly certified and return excess monies after consulting with legal counsel.