State audit recommends improved concessions control at UNI

A state audit recommends improvements to controls over inventory and cash collections at the University of Northern Iowa's Events Complex Concessions.

State Auditor David Vaudt on Tuesday released a report on the special investigation of UNI's Events Complex Concessions for the period of Oct. 1, 2006 through March 31, 2012. The complex is responsible for all concessions operations at the UNI Dome, the McLeod Center and West Gym. The special investigation was requested by UNI officials because proceeds from concession sales were diverted, according to the audit.

The concession stands are operated by volunteers from nonprofit organizations who run the stands in exchange for a portion of the proceeds.

A video surveillance camera in the concession office showed James Kehl, former assistant concessions director, remove cash from the safe after a women's basketball game on Feb. 24, 2012 and place the cash in his wallet. A recount of the cash in the safe the next morning by the concessions director determined $300 had been removed. Kehl was arrested on Feb. 29, 2012 and at the time of his arrest had three bundles of $20 bills in his wallet totaling $300. The money was paper-clipped the same way as the cash held in the concessions safe, but officials said there was no way of knowing for sure it was the same money, according to the audit.

The surveillance camera was installed after concerns were raised about Kehl. He was fired on March 1, 2012.

The audit also found that not all records used to track concession sales and inventory sold were retained, and so it was not possible to know if additional money was diverted.

Kehl deposited more than $17,400 of cash in his personal bank account between April 18, 2007 and Feb. 13, 2012, according to the audit, and most of the deposits were in even dollar amounts made within five days of an event held at the UNI Dome, the McLeod Center or West Gym. The audit was unable to definitively determine what portion of the cash deposited to Kehl's bank accounts was money from concession sales. No cash deposits were made to his personal bank accounts between Feb. 13, 2012 and July 1, 2012, four months after his termination from the job.

Kehl pled guilty to a fourth-degree theft charge on June 14, 2012. He was given a deferred judgment and ordered to pay $200 restitution, fines and other costs totaling $540.

The audit recommends stronger internal controls and stronger overall operations, such as using a point of sale system, ensuring inventory counts are verified by both volunteers and concession staff and cash is locked in bank bags when cash is collected from the concession stands.