Toledo couple investigated for improper spending from education fund

Police are investigating a Toledo couple accused of more than $78,000 of “improper spending and unsupported disbursements” from a state education program.

Diane Klenk-Chargo, the former state director of the Iowa Association of Skills, and her husband Dan Chargo, are identified in a state auditor report released Sept. 3 of receiving $41,189 of improper disbursements, $25,860 of unsupported disbursements and $11,609 of undeposited collections from the Skills program.

Toledo Police Chief Jeff Harnish said today he was headed to Des Moines to look at additional audit information but his investigation has just started and couldn't provide further comment.

The state auditor office's special investigation of the program covering years 2001 to 2008 was requested by the Department of Education because of concerns over financial reporting and certain disbursements made to Klenk-Chargo and her husband.

Chargo told audit authorities he was a volunteer and the “post secondary director” with the program, according to the audit report.

The Skills program is a non-profit organization established to serve high school and college student preparing for careers in trade, technical and skilled service occupations. The Skills program is funded by a federal grant through the Department of Education and also collects dues from students and faculty participating in the program. The department provided $110,405 of funding to Iowa Skills during this audited period.

The improper disbursements identified in the report of $41,189 includes $29,850 in excess salary and rent payments to Klenk-Chargo, $5,226 of payments on her personal credit card and $3,870 for improper reimbursements to her, and $1,131 in improper reimbursements to her husband, according to the audit report.

The improper reimbursements to Klenk-Chargo and Chargo consisted of six payments reported to the department as void and two reported as payable to a different payee.

The undeposited collections include $11,609 of checks written to Iowa Skills but deposited in the couple's personal account, according to the audit report. These checks were payments from community colleges and high schools for conference registration fees and lodging.

The audit report also included recommendations to strengthen the program's internal controls and overall operations. State Auditor David Vault also made recommendations to the deparment to enhance its monitoring of Iowa Skills.