(Des Moines) Today, State Auditor Rob Sand released a report on a special investigation of the City of Yale from June 1, 2020, through June 30, 2023. City officials requested the special investigation due to concerns regarding certain financial transactions processed by the former City Clerk, Jill White.
Sand reported the special investigation identified $19,384.70 of improper disbursements and $644.52 of unsupported disbursements. The improper disbursements identified include $7,753.29 of payment to Ms. White’s Capital One Credit card and Credit One Bank Credit card bills, $5,008.38 of excess checks issued to Ms. White, $2,525.15 of payroll-related late fees and interest, $1,977.27 of personal purchases made with the City’s credit card, $724.49 of purchases at gas stations, and $1,396.12 of personal purchases made at Fareway and Hy-Vee.
The $644.52 of unsupported disbursements identified includes $500.00 of reimbursements issued to Ms. White, $119.52 of purchases made with the City’s credit cards to various vendors, and $25.00 for a purchase of a gift card. Because the credit card charges and payments were not supported by sufficient documentation to determine the items paid for, it was impossible to determine if payments were for City operations or personal.
In addition, Sand reported City officials did not implement policies or procedures to address the recommendations in a report released by Gronewold, Bell, Kyhnn, and Co., PC. In November 2021 for the period ending March 21, 2021. The report included recommendations to segregate duties, reconcile bank accounts, disbursements exceeding budgeted amounts, not maintain a written investment policy or depository resolution, approve all disbursements by council, and prepare timesheets.
Sand recommended that city officials implement procedures to strengthen the City’s internal controls, including properly segregating duties, performing independent reviews of bank reconciliations, and ensuring all disbursements are adequately supported, approved, and paid promptly. Copies of this report have been filed with the Guthrie County Sheriff’s Office, Iowa Division of Criminal Investigation, the Guthrie County Attorney’s Office, and the Attorney General’s Office.
