(Des Moines) Auditor of State Rob Sand today released a report on a special investigation of the City of Missouri Valley for the period January 1, 2014 through December 31, 2019. The special investigation was requested by City officials as a result of concerns regarding certain financial transactions processed by the former Water Billing Clerk, Brenda Osborn.
Sand reported the special investigation identified $1,257.59 of undeposited collections, including checks substituted for cash collections recorded in the City’s accounting system but not deposited in the City’s bank accounts and cash collections recorded in the City’s utility system but not deposited in the City’s bank accounts.
Sand also reported the special investigation identified concerns regarding how utility security deposits were processed from January 1, 2014 through March 31, 2018. During this period, a total of $42,200.00 of utility security deposits were collected. The portion received in checks was converted to cash and placed in the City’s safe along with cash collections for up to 33 days before being deposited. Deposits were made when cash in the safe totaled approximately $1,000.00. Sand reported because the collections were not deposited in a timely manner, they were at risk for misuse prior to deposit.
Sand reported it was not possible to determine if additional collections were not properly deposited because adequate documentation was not available and collections were not consistently deposited in a secure manner or held in an area that restricted access to limited City staff. In addition, because utility accounts are removed from City records after three years of inactivity, it was not possible to determine the propriety of activity in accounts which were inactive from January 1, 2014 through December 31, 2016.
Sand recommended City officials implement procedures to ensure the City’s internal controls are strengthened, including segregation of duties and performing and independently reviewing utility reconciliations. Sand also recommended all amounts collected by the City be deposited intact and in a timely manner.
Copies of the report have been filed with the Harrison County Sheriff’s Office, the Iowa Division of Criminal Investigation, the Harrison County Attorney’s Office, and the Iowa Attorney General’s Office. A copy of the report is available for review on the Auditor of State’s web site at https://www.auditor.iowa.gov/reports/audit-reports/.
