Iowa clerk spent public money on gum, tobacco and Fritos, auditor finds

Without oversight, an Iowa city clerk allegedly used the small town's credit card for $19,000 in improper spending, tapping public funds for purchases that included six packs of Nerds Gummy Clusters, five cans of smokeless tobacco, three frozen breakfast pizzas, two boxes of tampons and a bag of chili cheese Fritos.

In a report released Tuesday, Iowa State Auditor Rob Sand wrote that Jill White, former city clerk for Yale, population 250, used the town's credit card and bank account to pay personal bills, cover grocery expenses and fill her vehicle with gas. In addition to the improper spending, Sand said his office found about $640 in unsupported disbursements ― purchases for which city officials could not produce invoices or receipts.

Sand said the city, located about 50 miles northwest of Des Moines in Guthrie County, asked his office to investigate the spending in June, following White's resignation after allegedly admitting she had issued improper checks to herself from Yale's bank account. The review of spending identified charges at Casey's, Kum & Go, Hy-Vee and Fareway.

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“According to City officials, these purchases were not authorized by the City and were not for City operations," the audit report said.

The auditor's office reported that White, who did not respond to a Des Moines Register message seeking comment, said during a Dec. 6 interview that she used Yale's credit card for personal purchases at Hy-Vee and Fareway. She said her use of the card to buy gas was accidental, but that she did not reimburse the city for the purchases, the report said.

In addition to groceries and gas, according to the auditor's report, White spent about $150 on weight loss supplements, about $130 on a Hampton Inn hotel room in Cedar Rapids, about $250 at Adventureland Park, about $415 for tax return preparation and about $430 to register a Ford Explorer with the Guthrie County Treasurer's Office.

Iowa city clerk oversaw public credit card, bank account transactions

According to the report, Yale officials became suspicious of White's spending in May after a banker told them she had issued a check to herself that "seemed to be more than her usual payroll." White was a salaried employee, with no opportunity to receive extra pay for working overtime.

The bank canceled the check in question, according to the report. But The auditor's office found two other improper checks issued to White in April and May, totaling $5,000.

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“During our interview with Ms. White, she was unable to explain why she issued herself additional checks," Tuesday's report said.

White, who joined the city in June 2020, oversaw Yale's public spending. She reviewed receipts and invoices from the city's two part-time staffers. She also received Yale's monthly credit card statements and submitted a spending report to the City Council for review.

In addition, White prepared bank reconciliations, though no Yale official reviewed the reports. The auditor's report said the reconciliation were prepared improperly.

State auditor: City clerk racked up late fees

The auditor's office found that White failed to make payments to other government agencies on time, costing Yale about $2,500 in penalties and late fees.

The Atlantic-based accounting firm Gronewold Bell Kyhnn & Co. PC in a report on Yale's 2020-21 finances had told the city it needed to change some practices to prevent improper public spending. It recommended segregating duties so that an employee spending public funds would not be in a position to also approve that spending.

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The state auditor's office again recommended that change in Tuesday's report.

"We realize segregation of duties is difficult with a limited number of staff," it said. "However, the duties within each function listed above should be segregated between the City Clerk, the Mayor, and City Council (members)."

Iowa State Auditor's report submitted to sheriff's office, prosecutors

In Tuesday's report, Sand wrote that his office had shared its findings with the Guthrie County Sheriff's Office and e County Attorney's Office as well as the Iowa Division of Criminal Investigation and the Iowa Attorney General's Office.

No charges had been filed as of Thursday.

Tyler Jett is an investigative reporter for the Des Moines Register. Reach him at tjett@registermedia.com, 515-284-8215, or on Twitter at @LetsJett. He also accepts encrypted messages at tjett@proton.me.

This article originally appeared on Des Moines Register: Audit: Iowa clerk went on $19,000 spending spree with city funds