The City of Iola received a clean audit during a presentation at Monday evening’s council meeting. “We had a good audit this year,” said Sean Gordon, CPA with Gordon CPA. He expressed his appreciation for City Clerk Roxanne Hutton’s help during the process. “She answered our questions and got us the timely information that we requested.”
Quickly reviewing the audit, Gordon noted that the city underwent an additional single audit. “It’s been a few years since the city has seen the governmental audits section,” he explained. “Any time an entity receives and spends $750,000 or more of federal grant money, it’s required to undergo a single audit.” Gordon says this was triggered by all the COVID money that has been spent in the past few years.
The single audit requires the CPA firm to examine and make sure the city followed all state, federal, and local requirements for the COVID-19 American Rescue Plan Act (ARPA) funds that have been spent throughout the year.
“For this, we’ve issued an unmodified opinion which is the highest and cleanest opinion that can be issued,” said Gordon. “This means the city met all of those requirements.”
He had no additional auditor recommendations to give the council, but reiterated his appreciation for the help provided by the city clerk’s office.
Hutton noted that her office begins preparing for the annual audit in January or Feburary each year.
IN OTHER NEWS, the council approved a resolution that would allow the use of unlicensed and unregistered golf carts and recreational vehicles on city streets during Saturday of Farm City Days. This is to assist in parade management and provide rides for elderly or handicapped individuals. The golf carts will be permitted on city streets, but will not be allowed to operate on U.S. Highway 54.
A public hearing was held to receive input from community members concerning the wastewater lagoon. The Kansas Department of Health and Environment (KDHE) is requiring the city to address excess ammonia in the city’s lagoon system. To tackle the problem, the city engaged Burns & McDonnell engineering firm to assess the wastewater treatment plant and provide recommendations.
In May, engineer Trevor Cook recommended installing a NitrOx Reactor. The reactor is designed to reduce ammonia and the five-day biochemical oxygen demand in the liquid discharge flowing into the Neosho River. The system also includes an electrical/operational building, two 40-horsepower blowers, and a pump station. The project has a price tag of $11.2 million.
With no public input, Mayor Steve French closed the hearing and opened it up to council comment.
“I don’t know if it will do us any good, but I think we need to get this story out there,” said council member Jon Wells. “We’ve been out of compliance once in five years and now we’re saddled with a $11 million bill and it seems unnecessary.”
Wells suggested the council members draft a letter to send to elected officials on the state and federal levels to see if they could be of any assistance. “Maybe they could find some sort of resources for us,” he said.
“Perhaps they can forgive us for a one-time violation,” suggested French.
At the previous council meeting, Water Treatment Plant Superintendent Toby Ross had noted that the ammonia levels were high during only one testing. “He had reported it was just one of those flukes,” said French. “We’ve had compliance since. This seems kind of harsh for a one-time violation.”
City Administrator Matt Rehder echoed this frustration, but noted that the project must go forward.
