Clerk at Honey Creek stole money, state audit reveals

A former employee of the state-owned Honey Creek Resort improperly transferred more than $2,770 from customers and the resort into private bank accounts she could access, according to a special investigation by the State Auditor's Office.

State Auditor David Vaudt released a report Friday detailing the alleged embezzlement by Kathy Ewing, the former group sales assistant at the resort on Lake Rathbun in southern Iowa.

The audit showed 10 improper refund transactions between Aug. 23, 2011, and Oct. 17, 2011, that Ewing deposited into her personal bank account or used to make payments on her mother's credit card, to which she had access.

Ewing, who was in charge of preparing, billing and adjusting group bills, created improper portfolios indicating refunds and credits to certain accounts, the audit found. She processed the refunds she created by applying them to her personal accounts, the audit shows.

Auditors recommended Honey Creek create more checks and balances, review supporting documentation for refunds issued and draft policies for use of credit cards.

Copies of the audit were filed with the state Division of Criminal Investigation, the Appanoose County Attorney's Office and the Attorney General's Office.

Honey Creek, which opened in September 2008, boasts a 105-room lodge, 28 cottages, fine-dining restaurant, water park and 18-hole golf course. The $58 million resort was financed mostly by the state and is run by the Iowa Department of Natural Resources.