State auditors found no major problems with Fort Dodge city government finances in a just-completed examination of the municipal accounts.
In a report released Thursday, assistants to State Auditor David Vaudt found no evidence of missing or improperly spent money.
They did recommend that the city close two tax increment financing trust fund accounts. They acknowledged in their 13-page report that the city is in the process of doing that.
The auditors wrote that the City Council complied with purchasing rules when buying a new sport utility vehicle for the Fire Department in 2010. However, they wrote that the council should have formally rescinded a previous vote to buy such a vehicle since the purchase was never completed.
Also, the auditors examined the abrupt Dec. 6, 2010, resignation of Barb Barrick, the former city clerk and finance director, by reviewing documents and doing interviews.
''Our review of this matter, including the city's settlement agreement pertaining to the former city clerk's departure, did not disclose any findings,'' they wrote.
Finally, the auditors wrote that a Nov. 28, 2011, agreement between the city and the W.H. Johnston Foundation will address legal concerns regarding a $1.3 million gift to the Fort Dodge Public Library.
City Manager David Fierke said the state auditor's staff identified four areas in which it recommended changing the way local officials do things. Three of them were follow-up items from an audit completed in 2009.
''We are very pleased that the city of Fort Dodge was able to resolve the findings in a timely manner,'' Fierke said. ''We will continue the highest levels of fiscal accountability and transparency.''
Jeff Nemmers, the city clerk and finance director, said local officials have ''established a strong rapport with the state auditor's office and we value our relationship with them.''
State officials conducted the audit in response to a citizens petition signed by 77 people. The petition was launched in April 2011 by Tom Weatherford, who ran unsuccessfully for the Ward 4 City Council seat last year.
Weatherford said Thursday evening that he had not read the entire report. He said he planned to ask the auditors some follow-up questions.
Tax increment financing
Tax increment financing occurs when increased property tax revenue from a designated area is set aside to be reinvested in that area, generally by paying off debt incurred for improvement projects.
City officials had established two trust accounts within the tax increment financing budget - one for industrial development and the other for riverfront improvements.
State auditors criticized those accounts in the 2009 audit report. At that time, they wrote that their creation didn't appear to be supported by current state law. The auditors acknowledged that the city established the accounts based on the advice of Bob Josten, a Des Moines attorney advising the council on financial matters.
In the report released Thursday, the auditors directed the city to spend the money in the trust accounts and then close them.
City officials are using the trust money to pay for trails along the Des Moines River.
According to the auditor's report, as of June 30, 2011, the industrial development trust account held $242,958 and the riverfront trust account held $524,680.
Fire Department vehicle
On April 27, 2009, the council voted to buy a sport utility vehicle, to be used by the assistant fire chiefs, from Karl Chevrolet, in Ankeny. According to the audit report, that company submitted a bid of $27,133, which included a towing package and wiring bundle. Fort Dodge Ford Lincoln Toyota submitted a bid of $26,956, which included a towing package, but no wiring bundle, according to the report.
The auditors reported that Fierke sent a memo to the elected officials on May 6, 2009, informing them that following the April 27 council meeting, Fort Dodge Ford Lincoln Toyota offered to provide the wiring bundle at no extra cost, making its product the least expensive one that met all specifications.
On May 27, 2009, the council voted to table the purchase of the vehicle.
The following year, the council purchased a Ford Expedition for the Fire Department from Fort Dodge Ford Lincoln Toyota for $27,511. The low bid of $26,976 came from Stivers Ford, of Waukee. The auditors wrote that the difference in prices fell within the local bid preference permitted under city law.
The auditors concluded that the council followed purchasing laws, but should have voted specifically to rescind the 2009 bid award to Karl Chevrolet.
Barrick resignation
Barrick and city officials have never said why she resigned. The audit report doesn't shed any light on the situation, either.
The state auditors wrote that they interviewed city officials and reviewed minutes of council meetings before they concluded there was nothing to report.
Library gift
A few years ago, the public library received a $1.3 million gift known as the Gwendolyn E. Scharfenberg bequest. That money was transferred to the W.H. Johnston Foundation, a private entity that supports the library.
City officials have tried repeatedly to gain asset control over that money, arguing that since it was donated to the library it is public money.
In the 2009 audit report, state officials wrote that local leaders were doing the right thing by trying to gain control over the money.
In the report released Thursday, the auditors wrote that an agreement reached with the Foundation would meet the legal concerns.
Contact Bill Shea at (515) 573-2141 or bshea@messengernews.net