STATE AUDITOR RELEASES REPORT ON SPECIAL INVESTIGATION IN ADAIR
(ADAIR) Auditor of State David Vaudt today (Tuesday) released a report on a special investigation of the City of Adair for the period January 1, 2007 through July 31, 2010. The special investigation was requested by City officials as a result of alleged misappropriations of City funds.
The investigation identified $119,339.17 of improper and unsupported disbursements and undeposited collections. The improper disbursements of $103,462.59 include $56,827.08 of payments to vendors such as Beacon Systems and Casey’s General Store. The improper disbursements also include payroll checks issued to former City Clerk, Linda Nichols, and her son, Terry Nichols, who worked for the City’s Street Department on an on-call basis. The improper payroll checks issued to Ms. Nichols and Mr. Nichols total $8,606.23 and $31,606.95, respectively. $3,148.47 was improperly paid to Ms. Nichols as a final payout as well. In addition, improper reimbursements totaling over $2,600 and $633 were issued to Ms. Nichols and Mr. Nichols, respectively.
The unsupported disbursements include payments to vendors including Menards, Orscheln Farm & Home, and a business owned and operated by Mr. Nichols, as well as reimbursements issued to Linda and Terry Nichols and checks issued to petty cash. Other undeposited collections were used for utility bills.
Vaudt reported it was not possible to determine if additional amounts were improperly disbursed or if collections were not properly deposited because adequate records for receipts and disbursements were not available.
Copies of the report have been filed with the Adair County Attorney’s Office, the Attorney General’s Office, the Federal Bureau of Investigation and the Iowa Division of Criminal Investigation. A copy of the report is available for review in the Office of Auditor of State online at auditor.iowa.gov.