Audit: Former Tama County conservation director spent public funds for personal use

A former Tama County conservation director improperly used public funds for personal purchases, including a fuel pump, ammunition and home remodeling materials, according to a state audit published Wednesday.

The State Auditor’s Office issued an 81-page report on the special investigation, which was requested by Tama County officials as a result of concerns raised regarding certain financial transactions processed by former Conservation Department Director Stephen Mayne.

Through the special investigation, the auditor’s office found nearly $77,000 was misspent by Mayne. The State Auditor’s report details $1,571 of improper disbursements and $75,293 in unsupported disbursements from March 1, 2021, through Aug. 14, 2023.

As conservation director, Mayne was allowed to purchase equipment and supplies with county money. He also received credit card statements and charge account invoices, reviewed the statements and provided them to the county’s five-member conservation board each month.

On Aug. 1, 2023, maintenance staff with the county conservation department discovered multiple receipts from a Menards account held by Mayes for supplies purchased in Cedar Rapids. The account was separate from one that was typically used by the county department, State Auditor Rob Sand told reporters during a news conference Wednesday.

Staff notified a county official. Ultimately, receipts from the account indicated Mayne had used county funds to make personal purchases at multiple vendors. He was placed on administrative leave later that day, and county officials notified the State Auditor’s Office, Sand said.

Download: Tama County Dept of Conservation Report.pdf

In November 2021, a month after a maintenance supervisor left his employment with the county, Mayne convinced the conservation board that those job duties — including park maintenance and purchasing — could be dispersed among the department staff, according to the report.

“This removed a layer of oversight and allowed Mr. Mayne to make purchases without the consent or discussion from staff,” Sand said.

The report notes the department was involved in multiple projects at the time, including ones related to various exhibits inside the county’s nature center. In addition, conservation department staff said Mayne was working on completing Occupational Safety and Health Administration required building upgrades and the construction of a computer server rack. However, department staff were unable to provide a list of materials necessary for the exhibit constructions, a list of OSHA required repairs or improvements, or a list of materials needed for the server rack construction.

Mayne was remodeling his home at the time and at least one other property, the report states.

“They (county officials) told us they believed the purchases were for personal use, but because proper documentation was not provided and could not be located, we were unable to determine whether or not $62,000 purchases actually ended up being used for the department operations or for personal use,” Sand said. “These were purchases of materials that could have been used on both public projects at the time and Mr. Mayne’s private projects.”

The State Auditor’s Office, though, did identify several improper, unsupported purchases, such as a fuel pump, 50 rounds of ammunition, fuel purchases from Casey's convenience stores, ink cartridges and a battery.

The report also identified rebates earned from purchases made on the Menards account, with 48 rebates totaling $2,348. Conservation department staff was unable to determine if the rebates were used for department operations or personal purchases due to lack of adequate supporting documentation.

Mayne told the auditor’s office the additional Menards account was opened prior to his hiring by the county, and the items were purchased for the department and stored in either the nature center’s basement or in the conservation department’s shop as needed. However, because the department lacked an inventory tracking system, the auditor’s office was unable to verify the claim.

The report also states sufficient records were not available to determine if all revenue collected by the department was properly deposited with the County Treasurer.

According to conservation department staff, receipt documentation such as registration slips for campsite reservations, was kept in Mayne’s office and at his house. In addition, staff thought Mayne stored information in a “cloud” server; however, department staff did not have access to the “cloud” server, according to the report.

Sand's office recommended county officials implement procedures to strengthen internal controls — including segregation of duties; performing independent reviews of the credit card statements and charge accounts; ensuring all fundraisers, fees and donations are collected and deposited with the County Treasurer; and ensuring all disbursements are properly supported and approved by the conservation board.

“Reports like this allow our office to remind people in places of leadership about the importance of oversight,” Sand said. “More than one person has got to be in charge of handling money, looking at receipts, depositing money, and running inventory on items that are purchased for public use to make sure that they are actually being used for the public.”

Mayne was hired as the department’s director in March 2021, and subsequently resigned in August 2023 after being placed on administrative leave, according to reporting by the Marshalltown Times-Republican. The former director’s salary was $72,000.

Sand confirmed that Mayne is no longer employed with Tama County. A new director was hired this past November, according to the Tama-Toledo News Chronicle.

Copies of the State Auditor’s report were filed with the Tama County Attorney’s Office, the Iowa Attorney General’s Office and the Iowa Division of Criminal Investigation.

A spokeswoman for the Iowa Attorney General’s Office said the case had been referred to the office, and was being handled by the county.

Tama County Attorney Brent Heeren was in court and did not immediately respond to messages seeking comment Wednesday.

Comments: (319) 398-8499; tom.barton@thegazette.com