Report finds former Danbury city clerk spent $175,000 on clothing, zoo tickets and home goods

A former northwest Iowa city clerk may have made more than $175,000 in personal purchases on a city credit card over two years, according to a report from State Auditor Rob Sand.

The report details an investigation into the city of Danbury’s finances between March 2020 and May 2022, when former city clerk Stacy Rockdaschel was responsible for nearly all the city’s disbursements, receipts, payroll and other financial reporting.

The auditor’s office found close to $100,000 in retail and wholesale clothing purchases on the city’s credit card during that time. Rockdaschel owned a boutique in town at the time, the report said, and city officials were concerned she was using city funds to purchase items for the business.

That store, the Dasch Boutique, closed shortly after Rockdaschel resigned from her city clerk position, according to court records.

Another $32,000 in city purchases during Rockdaschel’s tenure could not be accounted for, and there was an estimated $26,500 in missing utility cash payments.

Rockdaschel worked as the Danbury city clerk from March 19, 2020, until May 15, 2022, when she resigned. In spring 2022, the Danbury mayor gave Rockdaschel negative performance reviews and expressed concerns about billing being “doubled up” and her clocking in hours that were not worked.

After she resigned, city officials reached out to the Woodbury County Sheriff’s Office over those financial concerns.

Rockdaschel referred a request for comment to her attorney, who did not immediately respond. Danbury Mayor Brock Boyle and Woodbury County Sheriff Chad Sheehan also did not immediately respond to a request for comment.

Thousands spent on clothes, home goods

According to the report, $75,500 in city funds was spent on fashion wholesaler FashionGo, along with almost $20,000 in other retail clothing expenses.

The auditor’s investigation also found close to $45,000 was spent on PayPal and Venmo purchases for women’s clothing, skin care products, home decor items and social media services. The auditor’s office could not find documentation for an additional $10,800 in PayPal purchases.

Another $14,800 was spent on various retailers like Bump Box and Etsy, as well as tickets to the Omaha Zoo and grocery items. The investigation found $16,700 in payments for personal online business services and social media.

The investigation also found $17,600 in Amazon purchases, most of which could not be accounted for because they lacked documentation. More than $1,000 of those purchases were found to be for personal items.

Rockdaschel did not agree to be interviewed by the state auditor's office, the report says.

Report notes undeposited cash

The auditor’s office also found thousands of dollars in missing cash collections for utilities and a local rented event space.

The city did not maintain receipt lists for utility collections, and Rockdaschel did not present a monthly utility reconciliation to the council, the report says.

During the 27 months that Rockdaschel worked as city clerk, only $3,900 in cash deposits were made to the city’s bank account for utilities, the report says. In the six months before and after her tenure, deposits ranged from $6,000 to $7,000. On average, only about $143 was deposited each month Rockdaschel was clerk, while the months before and after saw more than $1,000 in cash deposits on average.

The auditor’s office estimated that $26,500 in cash utility payments were not deposited in the city’s accounts during Rockdaschel’s tenure.

The investigation also found thousands of dollars were unaccounted for in rentals of a city shelter house. The city operates the shelter, and residents can rent it for events for a $125 fee.

Rockdaschel was responsible for collecting, recording and depositing the cash and check payments for the shelter house. The shelter was rented 105 times, according to the city’s event calendar, for a total of $13,125. But city officials could only locate four applications, and the auditor’s office could only connect 47 reservations, totaling $5,875, to deposits in the city’s bank account.

The auditor’s office found the city was not following proper financial oversight procedures, and Rockdaschel had control over too many areas of the city’s finances without any outside review.

Auditor calls for more oversight

According to the report, city officials did not compare expenses and receipts, require itemized documentation of all expenses, or review the city’s bank statements or credit card statements.

The auditor’s office recommended that bank statements be reviewed by an official who does not collect or disburse city funds, and bank reconciliations should be done each month.

City officials should also regularly review the city’s credit card statement and ensure all purchases have supporting documentation, the report said.

“City officials have a fiduciary responsibility to exercise authority over its funds, efficiently and effectively achieve its mission, provide oversight of the City’s operations, and maintain the public trust,” the report said.

Search warrant filed in the case

Copies of Sand’s report have been filed with the state Division of Criminal Investigation and Woodbury County Sheriff’s office. No criminal charges have been filed, but court records show two search warrants were executed for Amazon purchases in Rockdaschel's name made with the city credit card.

According to the warrants, Rockdaschel contacted the city of Danbury after resigning and said she had been “dealing with fraud and possibly identity theft.” The warrant also notes that she failed to appear for an interview with Woodbury County Investigations.

The first warrant, issued Aug. 23, returned 43 transaction records. The second warrant, executed Aug. 31, broadened the request and noted that the 43 records did not reflect all the fraudulent charges on the city’s credit card statement.