(Des Moines, Iowa) – Auditor of State Rob Sand today released a report on a special investigation of the City of Elgin located in Fayette County. The special investigation was requested by City officials as a result of concerns regarding certain financial transactions processed by the former City Clerk, Rhonda Dales, and covered the period October 1, 2017, through June 30, 2021.

Sand reported the special investigation identified $131,212.73 of improper disbursements and $7,531.67 of unsupported disbursements. The improper disbursements identified includes $104,282.70 of unauthorized payroll and additional checks issued to Ms. Dales and related payroll costs, $19,204.10 of unauthorized reimbursements issued to Ms. Dales, and $5,881.00 of excess insurance premium payments issued to Ms. Dales. Sand also reported the improper disbursements identified includes personal purchases made using the City’s debit card and interest and late fees to IPERS.

The $7,531.67 of unsupported disbursements identified includes $6,595.93 of reimbursements issued to Ms. Dales and $935.74 of purchases made with the City’s debit card. Sand reported it was not possible to determine the propriety of these disbursements because they were not supported by documentation sufficient to determine if they were for City operations or personal in nature.

The report includes recommendations to strengthen the City’s internal controls and operations, such as improving segregation of duties, perform bank reconciliations, and ensure disbursements are properly supported by sufficient documentation.

Copies of this report have been filed with the Iowa Division of Criminal Investigation, the Fayette County Attorney’s Office, and the Attorney General’s Office. A copy of the report is available for review on the Auditor of State’s web site at Special Interest Reports.