IOWA CITY, Iowa (KCRG) – A new audit shows Iowa City school leaders moved $38 million between internal funds without required board approval, and auditors said that violated state law.
The fiscal year 2024 audit also found Iowa City Schools allowed its payroll department to enter new employees into the system, change pay and process payroll with little oversight.
Payroll oversight and internal controls
Auditors said strong financial systems need checks and balances. The audit identified the payroll issue as a material weakness.
The audit said the weakness might be one reason the district over-hired staff, stressing cash flow resources and contributing to problems the district is now facing…