State Auditor Identifies Improper Disbursements In P.J.

An investigation by the Iowa State Auditor’s Office identified nearly $32,000 in improper disbursements to Pacific Junction city employees over a five-year-period from July 1, 2008 - June 30, 2013.

The investigation also identified $74,000 in liability to the Internal Revenue Service for unpaid payroll taxes, penalties and interest, according to a report from Iowa State Auditor Mary Mosiman.

The improper disbursements included nearly $16,000 in vacation, sick leave and holiday pay received by former city clerk Kari Williams. She also received over $1,200 in improper bonuses and $700 in double-counted working hours. City policy requires employee to work at least 32 hours per week to be eligible for benefits such as vacation, sick leave and holiday pay. Investigators determined Williams worked an average of 26 hours per week.

In several instances, according to investigators, Williams issued her own paycheck before processing payroll for other city workers.

The audit report also identified funds improperly distributed to city maintenance supervisor Donald Kates and a lack of fiduciary oversight by Pacific Junction city council members.

Pacific Junction city attorney Eric Hansen said mayor Andy Young and other city officials are taking action to correct issues identified in the auditor’s report.

“I think we have some things in place that will prevent this from happening in the future,” Hansen said.

Findings from the state auditor’s investigation have been provided to the Mills County Attorney’s Office. Hansen doesn’t believe there was criminal intent on the part of any former or current city employees, noting that all claims were presumably approved by the city council.

“This doesn’t seem to be an instance of somebody trying to steal from the city,” Hansen said.

Hansen said Pacific Junction is working to retire its obligation tothe IRS by consolidating the debt with existing loans it has with Glenwood State Bank.