(Union Co) Auditor of State Rob Sand today released a report on a special investigation of the East Union Community School District – Early Childhood Center (ECC) for the period July 1, 2020 through August 31, 2022.
The special investigation was requested by District officials because of concerns regarding certain payroll transactions involving the custodian at the ECC, Grant Hall, and the Director, Hope Hall. Sand reported the special investigation identified $4,453.08 improper payroll and $760.91 of related payroll costs paid to Mr. Hall. However, because ECC records were not sufficiently maintained, it was not possible to determine if additional payroll transactions were improperly recorded or if additional amounts were improperly disbursed.
Sand recommended District officials implement procedures to ensure the ECC internal controls are strengthened, including developing policies and procedures to prevent District staff from hiring, supervising, and approving time records for family members or relatives. In addition, District staff should review payroll and related supporting documentation to determine reasonableness of hours worked, and ensure adequate supporting documentation be maintained for overtime and hours worked outside of an employee’s normal shift.
Copies of the report have been filed with the Union County Attorney’s Office, the Iowa Division of Criminal Investigation, and the Iowa Attorney General’s Office. A copy of the report is available for review on the Auditor of State’s website at Special Interest Reports.
