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Iowa City schools' 2025 audit finds five weaknesses and $517,828 in tax penalties
The PPEL fund reported $19.4 million but held $140,633 in cash
Sources: Iowa City Press-Citizen, The Gazette
View as table
| Value | |
|---|---|
| Reported balance | $19.4M |
| Cash at year end | $140.6K |
If you have kids in Iowa City schools, here's what's in the district's audit. The school board unanimously approved the fiscal year 2025 audit Tuesday, months past the state's deadline. Auditors flagged five weaknesses, including payroll and bank reconciliations.
Auditor Sarah Bohnsack called the problems “structural.” Financial Oversight Committee Chairman Charlie Funk said that in 45 years of commercial banking, he had never seen an audit with as many findings. The audit found the district had almost $38 million less than it reported to the state in November 2025.
Late payroll tax filings cost the district $517,828 in federal tax penalties. And $583,466 of $698,871 in federal special education money from Grant Wood AEA went to bus costs for general education students.
$583,466 of $698,871 in special ed money paid for general ed buses
$583.5KUsed for transportation and bus maintenance for general education students
Source: Iowa City Press-Citizen
View as table
| Value | |
|---|---|
| Used for transportation and bus maintenance for general education students | $583.5K |
- Capital Projects Fund: $16.9 million deficit at June 30, 2025
- Student activity fund: $1.65 million deficit
- Next audit: due in March
