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Iowa State Auditor

Some Cities have separate Boards/Departments with separate accounts, such as the Library or Fire Department. Should these separate Boards/Departments be included in the scope of City examinations?

Yes. Chapter 384.20 of the Code of Iowa pertaining to separate accounts, states, in part:

  1. A city shall keep separate accounts corresponding to the programs and items in its adopted or amended budget, as recommended by the committee (City Finance Committee).
  2. A city shall keep accounts which show an accurate and detailed statement of all public funds collected, received, or expended for any city purpose, by any city officer, employee, or other person, and which show the receipt, use, and disposition of all city property. Public moneys may not be expended or encumbered except under an annual or continuing appropriation.

Auditors should exercise professional judgment in determining the scope of procedures and extent of testing required when including separate Boards/Departments in City examinations.

See guidance pertaining to Separate Municipal Utilities.

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