State audit reveals improper use of funds by former Amana Colonies Land Use District administrator

The state auditor's office released a special investigation Wednesday of the Amana Colonies Land Use District which identified more than $48,000 of improper disbursements, including salary paid to the former administrator.

District officials requested the audit over concerns that Wallace Pasbrig, the former administrator, was mixing district funds with his personal funds, according to State Auditor David Vault's report.

The audit was conducted for the period of May 21, 2007 through March 31, 2011, which is the time Pasbrig was employed. He was the administrator until his death March 4, 2011.

The $48,221 of unsupported and improper disbursement included $34,851 of unsupported and improper payroll issued to Pasbrig, $1,084 for an unauthorized transfer from the district checking account to Pasbrig's personal checking account, $879 of improper purchases on the district's debit card and $802 of improper payments on Pasbrig's personal credit card account.

The audit also identified more than $1,800 of unsupported purchases for office supplies, which wasn't reasonable for district operations, and more than $1,000 for unsupported mileage, according to the report.

Vault reported it wasn't possible to determine if collections for permit fees were properly deposited because supporting documentation wasn't available.

The report recommended the district should strengthen it's internal control and overall operations, such as improvements to segregation of duties, review supporting documentation and to establish policies and procedures to ensure all board meeting minutes are maintained.

The board should also implement policies and procedures to ensure all transfers and payroll records are properly approved and maintained, including time sheets for hourly employees.

Copies of the report have been filed with the Division of Criminal Investigation, the Iowa County Attorney's Office and the Attorney General's Office.