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DUBUQUE, Iowa (KWWL) – A accompaniment reaudit of Dubuque’s FY2016 analysis is complete afterward accusations of conflicts of absorption and added issues.

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The reaudit was done afterward a citizens’ address to the Accountant of State. That reaudit articular several procedural modifications and offered recommendations for the City to implement.

The address to the Accompaniment requested a review:1. “Audit of Dubuque Initiatives and the money aisle amid the City and Dubuque Initiatives.”2. “For conflicts of interest, in accurate amid the City Manager and his wife’s organization, Community Foundation of Greater Dubuque.”3. “Conflicts of absorption involving Gronen Restoration, aka John Gronen.”4. “The auction of the 18th Street Agent Abode for $1.00 to Dubuque Bank and Trust.”5. “The affiliation amid Van Milligen and Dubuque Bank and Trust.”6. “The City’s absolute acknowledgment for accepted obligation bonds, tax accession costs bonds, parking armamentarium bonds, avenue bonds, baptize bonds, storm baptize bonds and Roshek Architecture indebtedness.”7. “Movement of funds amid departments afterwards able approval.”8. “Dubuque’s agent expenditures as compared to cities of commensurable size.”

The reaudit focused on the aboriginal bristles apropos as 6 and 7 were abundantly advised and 8 was not aural the ambit of the reaudit.

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The allegation are as follows:

Payments to Community Foundation of Greater Dubuque

The reaudit’s abundant allegation accompanying to City agreements with and payments to the Community Foundation of Greater Dubuque accompanying to Inclusive Dubuque, Project HOPE, and Every Child Every Promise.  The Accompaniment Accountant recommended bigger affidavit and advertisement to ensure the activities are allotment of an bread-and-er development plan. In acknowledgment to the findings, the City cited how those three initiatives abutment the City’s bread-and-er development efforts, emphasizing that “Economic development agency clandestine or collective accessible and clandestine advance involving the conception of new jobs and assets or the assimilation of absolute jobs and assets that would contrarily be lost.”

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Although the City’s accomplice agencies accept been accouterment accustomed letters to City agents and presentations to City Council account the outcomes of their programs/activities, based on the reaudit, the City has created a banking advertisement anatomy that all its accomplice agencies are now application to abide accounting annual reports.

As requested by the Accountant of State, the City will argue with absolute accustomed admonition to actuate the account of the accomplished disbursements referenced for an appraisal of whether any or all funds should be alternate to the City.

Business Transactions

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Regarding the apropos of a battle of absorption amid City Manager Mike Van Milligen and the Community Foundation of Greater Dubuque (CFGD) because Van Milligen’s spouse, Nancy Van Milligen, is admiral and CEO of the CFGD, the Accountant of Accompaniment recommended the City argue absolute accustomed admonition to analysis the abeyant battle issue. In the future, the City should ensure all abeyant conflicts of absorption transactions, contracts, or agreements are competitively bid in accordance with area 362.5(i) of the Cipher of Iowa and advance able affidavit to affirmation bids and decisions. Also, the City should ensure there are no conflicts of absorption back application grants, loans, guarantees, tax incentives, or added banking abetment in accordance with Iowa Code.

In response, the City asserted there is no battle of absorption and affairs complied with accompaniment code.  The agreements amid the CFGD and the City were accustomed by the City Council in accessible City Council meetings.  Additionally, the City has consistently appear the accord amid the Van Milligens to its auditors, who additionally agreed that it does not accommodated the analogue of accompanying affair or battle of absorption as authentic by Iowa Code.

As requested by the Accountant of State, the City of Dubuque will argue with absolute accustomed admonition to added appraise conflicts of absorption and will use aggressive behest area required. Approaching affairs with CFGD will be recommended to the City Council by the City Attorney and not the City Manager.

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Sale of the 18th Street Agent House

In June 2011, afterwards a accessible hearing, the City Council accustomed the auction of the above blaze agent abode #1 at 1805 Central Ave. to a non-profit alignment (Engine Abode #1, LLC – Dubuque Initiatives). The sale, for $1, was allotment of a development acceding to redevelop the architecture for use by non-profit organizations to serve adjacency residents. Subsequently, in August 2011, the non-profit again assigned the acceding to Dubuque Bank and Trust (DB&T) Community Development Corporation. The City Council accustomed the re-assignment of the development acceding to the DB&T Community Development Corporation. The Accountant of Accompaniment assured the City should accept captivated addition accessible audition afore the final resolution on the reassignment was approved.

As requested by the Accountant of the State, the City will argue with absolute accustomed admonition to actuate the accustomed accordance of the transaction administration of the 18th Street Agent House. The City will ensure dispositions of absolute acreage chase the Iowa Cipher and consecutive revisions are accurate in City Council affair minutes.

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Disbursement Approval

The reaudit acclaimed that all City disbursements(payments) are not accustomed by City Council above-mentioned to cost and the City did not accept a accounting cost action acceptance assertive accepted account bills and amount items to be paid above-mentioned to City Council approval.

As a aftereffect of this reaudit finding, able July 1, 2018, the City Council began acknowledging accounts payable payments afore checks are issued. Also, able July 1, the City Council gave allotment to the City’s accounts administrator to affair checks in acquittal of baddest expenditures, itemized the City Council resolution, above-mentioned to City Council approval.  Previously, alike admitting disbursements were not appropriate to accept above-mentioned preapproval from City Council, the City has consistently provided City Council with a advertisement of account expenditures, which are additionally appear account in the Telegraph Herald newspaper.

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The reaudit address accustomed the abetment provided by admiral and cadre of the City of Dubuque during the advance of the reaudit.  A archetype of the complete reaudit address is accessible for analysis on the Accountant of State’s website athttps://auditor.iowa.gov/reports/audit-reports/, in the Office of Accountant of State, and in the City of Dubuque City Clerk’s Office at 50 West 13th Street.

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