Iowa Auditor of State Rob Sand recently released a special investigation on the City of Yale.

The report spans a period from June 1, 2020 to June 30, 2023, and was requested by City officials, based on concerns regarding financial transactions processed by the City’s former Clerk, Jill White. In the special investigation, Sand identified $19,384.70 of improper disbursements, and $644.52 of unsupported disbursements.

Included in the improper disbursements were $7,753.29 of payments 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 on the City’s credit card, $729.49 of purchases at gas stations and $1,396.12 of personal purchases made at Fareway and Hy-Vee.

The unsupported disbursements include $500 of reimbursements issued to Ms. White, $119.52 of purchases made with the City’s credit card and $25 for a purchase of a gift card. Sand says that because the credit card charges and payments were not supported by adequate documentation to show the items purchased, it wasn’t possible to determine if these payments were for the City or personal means.

In addition, Sand mentions that City officials didn’t implement policies or procedures to address recommendations in a report from 2021 released by Gronewold, Bell, Kyhnn and Co., PC. that suggested recommendations to segregate duties, reconcile bank accounts, disbursements exceeding budgeted amounts, not maintaining a written investment policy or depository resolution, approval of all disbursements by the City Council and preparation of timesheets.

Sand recommends that City officials implement procedures to ensure the City’s internal controls are strengthened, including properly segregating duties, performing independent reviews of bank reconciliations and ensuring all disbursements are properly supported, approved, and paid in a timely manner. Copies of the report have been filed with the Guthrie County Sheriff’s Office, Iowa Division of Criminal Investigation, Guthrie County Attorney’s Office and the Attorney General’s Office.