Iowa state auditor reports on special probes

DES MOINES - State Auditor Mary Mosiman issued reports Thursday on three separate special investigations her office conducted that raised questions over more than $350,000 worth of funds involved in various financial transactions.

Mosiman said a special investigation of the Substance Abuse Treatment Unit of Central Iowa was conducted for the period from October 2014 through July 2016 as a result of concerns raised over certain credit card transactions and deposits by the unit's former finance coordinator, Amy Trainer, who she indicated left work on July 20, 2016, and did not return.

The auditor's special investigation identified $82,859 of undeposited collections and improper disbursements. The undeposited collections included $46,710 of cash recorded in the unit's accounting records for client fees which was not properly deposited, according to the auditor's report.

The $36,149 of improper disbursements identified consisted of purchases made with the unit's credit cards - including $35,240 of transactions described as purchases from vendors on the credit card statements but actually were payments to Trainer's personal bank account, according to the auditor's report. Mosiman also reported the $909 of remaining improper purchases made with the credit cards included personal purchases made from four vendors.

Mosiman said copies of the report have been filed with the Marshalltown Police Department, the Iowa Division of Criminal Investigation, the Marshall County Attorney's Office, and the Iowa Attorney General's Office.

Separately, Mosiman released a special investigation report of the School Nutrition Association of Iowa for the period from January 2010 through July 2016 that was conducted at the request of association officials as a result of concerns regarding financial transactions processed by the former executive director, Norma LaMantia.

The association is a statewide, nonprofit, professional organization representing more than 950 members employed by school districts who provide meals to students across the state to ensure all children have access to healthy school meals and nutrition education.

Mosiman said her office's probe identified $166,898.25 of undeposited collections, including checks submitted to or collected by LaMantia for the association but that were not properly deposited to the association's bank accounts.

Instead, the auditor's report stated that LaMantia deposited the checks in personal bank accounts or bank accounts she established in a name which caused them to appear to be held by the association. The bank accounts LaMantia established were not authorized by association officials and the disbursements from the bank accounts to which the checks were deposited were personal in nature, according to the auditor's report.

Mosiman also reported sufficient records for collections were not available from the association and financial institutions were unable to provide images of checks for all deposits to accounts held by LaMantia, making it impossible for the auditor's office to determine if additional collections were not properly deposited.

Mosiman reported the association established a contract with LaMantia which was effective from July 1, 2015, through June 30, 2017. However, LaMantia signed a resignation letter dated June 30, 2016, after association officials confronted her regarding certain concerns. After LaMantia resigned, officials identified certain payments to the association which were not properly deposited, according to the auditor's report.

Of the $166,898 of undeposited collections identified, Mosiman said, $122,758 was deposited to a bank account established at Wells Fargo on Jan. 8, 2013. The account was closed on July 1, 2016. The undeposited collections identified also included $44,140 improperly deposited to various accounts held at IH Mississippi Valley Credit Union. The deposits were made between Feb. 3, 2010, and July 9, 2012.

Mosiman also reported LaMantia deposited a $10,650 personal check to the association's authorized bank account on June 26, 2014. The documents LaMantia prepared for the deposit described the check as fees from a vendor who rented booth space at the association's annual conference. During an interview, LaMantia stated she deposited the personal check to the association's account because 'I felt so guilty,” according to the auditor's report.

Mosiman said copies of the report have been filed with the Davenport Police Department, Scott County Attorney's Office, DCI and the Iowa Attorney General's Office.

Also Thursday, Mosiman released a special investigation report of the Anthon Rescue Squad located in northwest Iowa for the period January 2009 through December 2014 that was requested by city and rescue squad officials after they were contacted by a collection agency regarding a credit card they were unaware had been established in the squad's name.

The state auditor's office identified $100,956 of improper and unsupported disbursements. Of the $91,901 improper disbursements identified, Mosiman said $80,941 were payments on credit cards established in the name of Kristine Roggatz, the squad's secretary/treasurer from 2003 to March 2014 - including a Staples credit card, a CitiBusiness Platinum Select Card, a Commerce Bank Card, and a Sam's Club Discover credit card. Mosiman reported bank statements before Jan. 1, 2009, were not readily available for the rescue squad's bank account and payments were made on the Staples and CitiBusiness credit cards in January 2009. As a result, auditors could not determine whether additional funds were issued from the squad's account for the personal credit card accounts.

Other improper disbursements identified include 19 cash withdrawals made at ATMs and purchases from phone service providers, online vendors, and retail vendors, according to the auditor's report. Mosiman also reported the $9,056 of unsupported disbursements identified include purchases from online and retail vendors.

Mosiman reported it was not possible to determine if additional amounts were improperly disbursed because bank statements and images of checks redeemed before Jan. 1, 2009, were not available. In addition, sufficient records for certain disbursements were not readily available from the rescue squad, the auditor noted, and it was not possible to determine if all collections were properly deposited because adequate documentation was not available.

Mosiman said copies of the report have been filed with the DCI, the Woodbury County Attorney's Office, and the Iowa Attorney General's Office.