Auditor of State Mary Mosiman today released a report on a special investigation of the city of Huxley Fire and Rescue Association for the period January 1, 2012 through April 30, 2017. The special investigation was requested by Fire Chief Chad Anthony as a result of concerns regarding the propriety of certain financial transactions of the Huxley Fire and Rescue Association (Association).
Mosiman reported the special investigation identified $5,581.19 of improper and unsupported disbursements from the funds collected by the Association. The $2,732.02 of improper disbursements identified includes $740.04 of cash payments to individuals, $141.82 of cashier’s checks issued to vendors, $1,370.55 of debit card purchases, and $479.61 of purchases at Sam’s Club. The bank documents associated with these transactions were signed by the former Treasurer and co-signed by the former President of the Association.
The $2,849.17 of unsupported disbursements identified includes $2,201.15 paid to flower shops, $524.30 of debit card purchases at Hickory Park in Ames, and $273.72 of debit card purchases at Chili’s restaurant in Ankeny.
Mosiman reported it was not possible to determine if any additional improper disbursements were made or if all donations and fundraiser collections were properly deposited during the period of the investigation because adequate records were not available. The report includes recommendations for the Association to strengthen internal controls, such as improvements to segregation of duties, maintaining supporting documentation for all expenditures, and maintaining adequate financial records, including ledgers, receipt books, and bank reconciliations.
Copies of the report have been filed with the Division of Criminal Investigation, the Story County Attorney’s Office, and the Attorney General’s Office. A copy of the report is available for review in the Office of Auditor of State and on the Auditor of State’s web site at https://auditor.iowa.gov/reports/1720-0816-BE00.