I-1 - Preliminary Official Statement - UR Loan Agreement

City of Tiffin Schedule of Findings Year ended June 30, 2019 Findings Related to Required Statutory Reporting: (1) Certified Budget – Disbursements during the year ended June 30, 2019 exceeded the amounts budgeted in the public works, general government, debt service and business type activities functions prior to the budget amendment. Also, actual disbursements exceeded the amounts in the budget for debt service and business type activities functions at year end. Chapter 384.20 of the Code of Iowa states, in part “Public monies may not be expended or encumbered except under an annual or continuing appropriation. Recommendation – The budget should have been amended in accordance with Chapter 384.18 of the Code of Iowa before disbursements were allowed to exceed the budget. Response – The City will amend the budget according to the Code of Iowa prior to exceeding disbursements. Conclusion – Response accepted. (2) Questionable Disbursements –No disbursements we believe may not meet the requirements of public purpose as defined in the Attorney General’s opinion dated April 25, 1979 were noted. (3) Travel Expense – No disbursements of City money for travel expenses of spouses of City officials or employees were noted. (4) Business Transactions – Business transactions between the City and City officials or employees are detailed as follows: Name, Title and Transaction Business Connection Description Amount Ann Ross, Utility Billing Clerk Cleaning services $ 5,363 The transactions with Ann Ross may represent a conflict of interest since the transaction exceeded $2,500 before May 3, 2019 and were not competitively bid in accordance Chapter 362.5(3)(j) of the Code of Iowa. Recommendation – The City should consult legal counsel to determine the disposition of this matter. Response – Ann Ross is no longer a City employee. Conclusion – Response accepted. (5) Bond Coverage – Surety bond coverage of City officials and employees is in accordance with statutory provisions. The amount of coverage should be reviewed annually to ensure the coverage is adequate for current operations. 58