Examination replaces annual audit for Wayland city finances
By TRISHA PHELPS
Mt. Pleasant News
WAYLAND — After sending out three requests to area accounting firms, Wayland City Council approved the only response they received to do their new annual examination for the state.
Due to a change in state legislation, every city in Iowa with an annual budget of over $1,000,000 for two consecutive years will now have to have an annual fiscal examination instead of an audit every four years.
Ann Menke, certified public accountant of West Point and Keokuk, was awarded the project. She quoted the city at $5,500 for approximately 50-60 hours of work.
The city’s last audit cost $7,500.
“We sent out three requests, but only go this one back,” City Clerk Bev Conrad reported to the City Council on Wednesday night. “One company doesn’t do this stuff, the other company didn’t send anything back and the state basically said they are too busy that they can’t do any.”
“So in other words, we don’t have any other choice?” asked Council member Greg Rich.
“Right,” replied Conrad.
Conrad explained to the council that according to the new legislation, there is a very good possibility that Wayland will have to have this examination every year instead of having an audit every four years.
“So we will never have to have an audit?” asked Mayor Brad Roth.
“Nope. If you are over a million dollars in your budget, which we always will be, you have to have this examination every year,” explained Conrad. “So this is what we have. Since this is so new, nobody really knows what or how much time it is going to really take until you do one.
“I asked them for a three-year rate and they didn’t want to do that because it is all so new and they wanted to see what would happen. Maybe next year they would be able to give a three-year rate.” said Conrad.
So instead of $7,500 dollars for an audit every three years, we have to pay $5,500 every year for an exam?” asked Rich.
“Possibly, yes,” answered Conrad.
“We will have more options after this year I think. It is just that right now only certain ones do it because they have done audits before and they might be doing this now because exams are not as hard as audits and shouldn’t take much longer,” added Conrad.
Conrad noted that the last audit took approximately 90 hours to complete.
“So this is going to take 50-60 hours?” asked Council member Kevin Fort.
‘Two thirds the price,” said Roth.
“Two thirds the hours,” added Rich.
“And then you have to do it every year,” finished Council member Melinda Ullery.
The council also:
• Considered the purchase of a utility maintenance vehicle and trailer, tabled for the next meeting.
• Heard the fire department’s annual report.
• Approved building permits for structures at 500 block of West Main Street, 300 block of South Washington Street, 300 block of West Fourth Street, 400 block of West Main Street and 300 block of West Front Street.
The next city council meeting will be on July 17 at 7:30 p.m. at City Hall.