March 31, 2023

Prairie City audit report

Faller, Kincheloe & Co, PLC released an agreed-upon procedures report on the City of Prairie City, for the period July 1, 2021 through June 30, 2022. The agreed-upon procedures engagement was performed pursuant to Chapter 11.6 of the Code of lowa.

Faller, Kincheloe & Co, PLC reported 15 findings related to the receipt and disbursement of taxpayer funds. They are found on pages 9 through 12 of this report. The findings address issues such as a lack of segregation of duties, bank reconciliation issues, concerns with the City Council minutes and excessive tax increment financing fund balances. Faller, Kincheloe & Co, PLC provided the City with recommendations to address each of the findings.

Twelve of the 15 findings discussed above are repeated from the prior year. The City Council has a fiduciary responsibility to provide oversight of the City’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 agreed-upon procedures report is available for review on the Auditor of State’s website at