Audit released for reservoir commission

Roof, Gerdes, Erlbacher, PLC, Certified Public Accountants, Des Moines, released an audit report on the Clarke County Reservoir Commission (Commission) in Osceola.

Financial highlights:

The commission’s revenues totaled $1,572,358 for the year ending June 30, 2024, a 28% increase from the prior year. Expenses for the year ending June 30, 2024 totaled $227,815, a 11% increase from the prior year. The significant increase in receipts was due to grant funds received from the federal government. The significant increase in expenses is due primarily to an increase in service provider fees and professional fees incurred by the Commission in fiscal year 2024.

Audit findings:

Roof, Gerdes, Erlbacher, PLC reported five findings related to the receipt and expenditure of taxpayer funds. They are found on pages 29 through 32 of the report.

The findings address issues such as a lack of segregation of duties, material amounts of receivables, liabilities and capital asset additions not properly recorded in the commission’s financial statements, the inability to prepare the financial statements and the related notes to the financial statements and concerns with the failure to bill the federal government. Roof, Gerdes, Erlbacher, PLC provided the commission with recommendations to address each of the findings.

Three of the five findings discussed above are repeated from the prior year.

The commission’s board of directors has a fiduciary responsibility to provide oversight of the commission’s operations and financial transactions. Oversight is typically defined as the “watchful and responsible care” a governing body exercises in its fiduciary capacity.

A copy of the audit report is available for review on the Auditor of State’s web site at Audit Reports - Auditor of State.