Former Benton Development Group director faces felony theft charges

DES MOINES - A special investigation shows the former executive director of the Benton Development Group made thousands of dollars in unauthorized purchases using the group's credit card and gave herself extra pay.

Iowa State Auditor Mary Mosiman in a report released Wednesday said the investigation was conducted based on concerns raised about financial transactions made by Ranae Becker, former director of the nonprofit group, which provides assistance to communities, individuals and businesses in Benton County to increase economic strength and growth.

Becker, 46, was charged Wednesday with first-degree theft in a Benton County court and was released after posting bond.

Becker, who took over as executive director in June 2004, was laid off in 2013 because of budget constraints but then rehired on a part-time basis, according to the report. She left the job in June 2014 during the group's search for a new full-time executive director.

Mosiman identified $49,634 of improper and unsupported spending from Jan. 1, 2009, through Aug. 31, 2014, the report shows. Mosiman said she couldn't determine whether there were additional improper transactions before Jan. 1, 2009, because sufficient documentation wasn't available. It also wasn't possible to determine whether all collections received by the Benton group were properly deposited during the review period because adequate records weren't available, Mosiman said in the report.

The identified improper spending includes $17,435 in purchases on the nonprofit's credit card to restaurants, wireless phone providers, convenience stores, Alliant Energy and retail establishments, as well as purchases during vacations in Virginia, the report shows. In addition, extra payroll checks worth $12,825 were made out to Becker.

Mosiman also said there wasn't sufficient documentation to determine whether another $7,321 spent for vendors and $3,624 in credit card purchases were for the group's operations or personal use.

The group discovered the discrepancies after the board members didn't receive certain information requested from Becker to prepare a budget for fiscal year 2014, and some members volunteered to gather financial records and help clean up and organize the group's office. During that process, two board members found several credit card statements and receipts in the trash that showed what appeared to be personal purchases made with the nonprofit's credit card.

The Vinton Police Department was contacted and an investigation was opened April 23, 2014, the report shows. In May, the Benton County Attorney's Office issued a subpoena for the group's credit card statements and for the checking and savings accounts.

Mosiman's office was contacted last May and asked to investigate.

Benton County Attorney David Thompson and Vinton Police Capt. Eric Dickinson were not immediately available Wednesday for comment.     

The nonprofit group's board of directors changed in January 2014 and new procedures were implemented that provide more oversight, Mosiman noted in the report. The board is composed of representatives from the 15 communities in Benton County, as well as five county-at-large members appointed by the county board of supervisors.

'Prior to January 2014, the board failed to exercise proper fiduciary oversight,” Mosiman added.

The report also includes recommendations to the board of directors to ensure sufficient oversight continues and to strengthen the group's internal controls, such as improvement to segregation of duties, performing bank and credit card reconciliations and ensuring all spending is properly supported, approved and paid in a timely manner.

l Comments: (319) 398-8318; trish.mehaffey@thegazette.com