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Cascade council accepts 2024 audit after auditor flags material weaknesses
Summary
Independent auditor Bergen KDB presented Cascade's fiscal 2024 audit, listing three material weaknesses and several recommendations; the council unanimously adopted a resolution accepting the audit.
Dustin Opatz, senior manager with Bergen KDB, presented the city’s fiscal year 2024 audit to the Cascade City Council on Jan. 13 and outlined three material weakness findings: lack of segregation of accounting duties, an error in utility billing that left a material amount of water unbilled, and a material audit adjustment that required coding revenue to the correct account.
Opatz also discussed state compliance test work under the Iowa Code, noting two findings: several funds were in deficit (each described as about $35,000 to $40,000) and one function exceeded its budget. He highlighted the city’s improved general fund cash balance — an increase of roughly $800,000 and an unassigned fund balance near 40% of expenditures — and cautioned that enterprise fund operating results differ: the water fund showed an operating loss of about $19,000 and had roughly $57,000 in reserves, while the sewer fund had healthier reserves (about $460,000).
Councilmember Delaney moved to adopt Resolution No. 2‑25, accepting Bergen KDB’s financial audit for the fiscal year that began July 1, 2023 and ended June 30, 2024; Councilmember Gale seconded. A roll‑call vote recorded all ayes and the resolution passed.
Opatz recommended the council consider steps to address segregation of duties, review utility billing procedures and examine rates for the water department given the operating loss. He also offered to be a resource to the city for follow‑up questions about city finances.
Resolution 2‑25 was approved by roll call (Oliphant/Weber/Hush/Gale/Delaney recorded as voting ‘Aye’ in the meeting transcript).
