(CRESTON) The Office of Auditor of State today released a report on a special investigation of the Creston Water Works for the period July 1, 2005 through November 16, 2012.
The special investigation was conducted as a result of concerns regarding certain purchases and other financial transactions authorized by the General Manager, Steve Green.
The procedures identified $89,836.79 of improper and unsupported disbursements. The $86,780.23 of improper disbursements identified includes $49,720.42 of pay to Mr. Green and additional retirement contributions for inspections of 2 projects for which a separate inspector had been hired, $30,313.15 of unauthorized vacation payouts and FICA contributions and $2,317.27 of assets purchased by the Water Works but in Mr. Green’s possession. The improper disbursements identified also include $1,960.96 of petty cash reimbursements to Mr. Green for prescription medications and $1,262.72 to Mr. Green for meals.
The $3,056.56 of unsupported disbursements identified includes petty cash reimbursements to Mr. Green and other Water Works employees for meals, travel and conference expenses for which documentation was not sufficient to determine the propriety of the reimbursement.
The Water Works does not allow employees to carry over or payout their vacation balance without Board approval. However, in addition to paying out his vacation balance, Mr. Green carried his balance over from year to year. As a result, Mr. Green’s vacation balance is overstated by 476 hours, which is valued at $22,524.32.
The report includes recommendations to strengthen the Water Works’ controls and procedures over inventory, payroll and other disbursements, including petty cash.
Copies of the report have been filed with the Union County Attorney’s Office, the Attorney General’s Office, the Union County Sheriff’s Office and the Division of Criminal Investigation. A copy of the report is available for review in the Office of Auditor of State and on the Auditor of State’s website.