(Des Moines) Auditor of State Rob Sand today released a report on a special investigation of the City of Hastings for the period December 1, 2018 through May 31, 2020. The special investigation was requested by City officials as a result of concerns regarding certain financial transactions processed by the former City Clerk, Darren Gray.
Sand reported the special investigation identified $8,406.08 of improper disbursements and $3,472.40 of unsupported disbursements. The improper disbursements identified include $4,898.45 of unauthorized payroll to Mr. Gray and the related City share of the payroll costs. The improper disbursements identified also include $1,733.76 of improper reimbursements to Mr. Gray and $1,684.38 of late fees and interest. The $3,472.40 of unsupported disbursements identified includes $1,966.50 of payments to Mr. Gray’s wife, for training she provided to Mr. Gray.
Sand reported it was not possible to determine if additional amounts were improperly disbursed or if any collections were not properly deposited because adequate documentation was not available.
Sand recommended City officials implement procedures to ensure the City’s internal controls are strengthened, including segregation of duties, performing independent reviews of bank statements, reviewing payroll records, and ensuring all disbursements are properly supported, approved, and paid in a timely manner.
Copies of the report have been filed with the Iowa Division of Criminal Investigation, the Mills 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/auditreports/.
