Iowa audit turns up improper bank transitions

DES MOINES - A special investigation by the State Auditor's Office has identified nearly $279,345 of improper disbursements and undeposited collections tied to a former secretary responsible for the Mahaska County Soil and Water Conservation District's financial accounts.

State Auditor Mary Mosiman said the probe turned up evidence of $241,248 in cash withdrawn from the district's bank account on 135 occasions during the period from March 2006 through August 2013 as part of the improper disbursements. The withdrawals ranged from $62.08 to $4,600.

Supporting documents obtained by state auditors from the bank for 113 of the 135 transactions indicated all but one of the cash withdrawals listed Jessica Strasser's name as the individual who withdrew the cash. Strasser, the district's former secretary, was an Iowa Department of Agriculture and Land Stewardship (IDALS) employee who resigned on Aug. 9, 2013.

According to the state auditor's report, IDALS officials suspended Strasser's employment on Aug. 8, 2013. The state Department of Agriculture and Land Stewardship provides technical support to the 100 soil and water conservation districts across Iowa and provides funding for certain projects administered by the districts.

'Subsequent to her suspension, a letter was received by the district office which indicated it was from Ms. Strasser, although it was not signed,” according to the auditor's report. 'Ms. Strasser did not specify her actions in the letter, but the letter stated, ‘My actions are not excusable and I take full responsibility for them.'”

During an interview held with an agent of the state Division of Criminal Investigation in July 2014, Strasser admitted she made unauthorized cash withdrawals from the district's bank accounts and withheld cash from some deposits made to the district's bank accounts, the auditor's report stated.

The improper disbursements came to light after a representative of Iowa Department of Natural Resources sent a letter to the Mahaska County district in November 2012 requesting a $65,948 payment for the district's share of recently completed work for a conservation project.

After months of inaction, an IDALS representative who was visiting the district office in July 2013 asked Strasser to prepare a check that he would personally deliver to the DNR. Strasser wrote the check but later stopped payment before it could be deposited and returned by the bank due to insufficient funds, the auditor's report indicated.

Because Strasser stopped payment on the check, IDALS officials became concerned about the district's financial operations. They then suspended Strasser's employment on Aug. 8, 2013, and she subsequently resigned one day later.

The state auditor's office recommended more internal controls be implemented by the district to avoid an arrangement where only one person is in charge of financial duties, oversight and bank reconcilations.

Copies of the auditor's report have been filed with the Mahaska County Attorney's Office, the Iowa Attorney General's Office, the state Division of Criminal Investigation, and the U.S. Department of Agriculture Office of Inspector General. A copy of the report is available at the http://auditor.iowa.gov/specials/1360-0090-BE00.pdf Web address.

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