(Dexter) Auditor of State Rob Sand today released a report on a special investigation of the Dexter Public Library for the period July 1, 2015 through March 1, 2022. The special investigation was requested by City officials as a result of concerns regarding certain financial transactions processed by the former Library Director, Mary McColloch
Sand reported the special investigation identified $13,589.50 of undeposited collections, $4,179.59 of improper disbursements, and $3,361.54 of unsupported disbursements.
Sand reported the $13,589.50 of undeposited collections identified includes: $5,801.80 of checks issued to the Library which were improperly deposited into the Dexter Community Foundation’s bank account; $75.00 of checks issued to the Library which were not properly deposited into the City’s bank account; $5,212.70 of Library collections for donations and fundraisers which were not properly deposited into the City’s bank account; and $2,500.00 of Bayer Ag grant proceeds issued to the Library which were deposited into the Dexter Community Foundation’s bank account.
Sand also reported the $4,179.59 of improper disbursements identified includes $3,950.01 of improper payroll issued to Ms. McColloch, $188.58 of improper payroll issued to the former Children’s Librarian, and $41.00 of reimbursements issued to Ms. McColloch.
The $2,404.57 of unsupported disbursements identified includes $2,302.61 of reimbursements issued to Ms. McColloch and $101.96 of disbursements from the City’s bank account to vendors for the Library. Sand reported it was not possible to determine the propriety of these disbursements because adequate documentation was not maintained to determine if they were for Library operations or personal in nature.
Sand reported it was not possible to determine if additional amounts were improperly disbursed or if additional collections were not properly deposited because adequate documentation was not available.
Sand recommended Library officials implement procedures to ensure the library’s internal controls are strengthened, including segregation of duties, enforcing policies in tracking and collecting revenue generated from library operations, ensuring donations and fundraiser revenue are tracked and deposited, and ensuring library disbursements are properly supported, approved, and paid in a timely manner.
Copies of the report have been filed with the Dallas County Sheriff’s Office, the Iowa Division of Criminal Investigation, the Dallas 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 website at Special Interest Reports.
