Iowa State Auditor Rob Sand has released an agreed-upon procedures report on the City of Riverside. This report covers the period from July 1st, 2019 through June 30th, 2020. The report cites 12 findings related to the receipt and disbursement of taxpayer funds.

The investigation reviewed city council minutes, the City’s internal controls, duties, surety bond coverage, City Clerk financial reports and bank reconciliations, city funds and balances, annual financial reports, investment policies, debt, accounting accuracy and consistency, account transfers, payroll and the certified budget.

Specific actions highlighted in the report include a business transaction listed as rent in the amount of $17,700 with City Clerk Becky LaRoche, owner of the Riverside History Center’s Building as a possible conflict of interest. An attempt to increase solid waste rates in October of 2019 that were not approved by ordinance, a utility excise tax of just over $1,800 in May of 2020 that the City recorded incorrectly as property tax and a payment of just over $1,500 to Kieck’s Career Apparel and Uniform for the listed purpose of Fire department fleece jackets which was deemed to possibly not meet the public purpose requirement for spending public funds.

The report suggests the following changes to limit future issues: a segregation of duties for those handling City business, an independent individual to review accountability, control and bank reconciliations, procedures to ensure reconciliation concerning utility billing, collections and accounts with oversight, documentation of the public purpose of disbursements of City funds by the City Council,approval of utility rates by ordinance, a monthly report from the City Clerk to include budget comparisons, review of receipts, amending the budget, and consulting legal counsel regarding potential conflicts of interest.