Iowa auditor investigates former Eldridge city clerk’s spending
On Thursday, Auditor of State Rob Sand released a report on a special investigation of the City of Eldridge spending, according to a news release from Sand’s office.
Eldridge city officials requested the report because of concerns about “certain financial transactions” processed by former City Clerk Denise Benson, the release says.
The report covers a period from Jan. 1, 2017, through Oct. 31, 2022. Sand reported the special investigation identified $76,171.90 of improper disbursements, and $8,718.18 of unsupported disbursements.
The improper disbursements identified includes:
- $42,384.74 of personal purchases made with the city’s credit card
- $1,138.89 of unauthorized payroll issued to Benson and related payroll costs
- $16,515.15 of payment to Benson’s Capital One Credit card bill
- $16,133.12 of payments to other vendors via check or online payment.
Sand also reported the improper disbursements identified includes sales tax, late fees and finance charges on the city’s credit card.
According to the release, the $8,718.18 of unsupported disbursements identified includes $6,325.76 of purchases made with the city’s credit cards and $2,392.42 of payments made from the city’s checking account. Sand reported it “was not possible to determine the propriety of these credit card charges and disbursements because adequate documentation was not maintained to determine if they were for City operations or personal in nature.”
In addition, Sand reported city officials did not implement policies or procedures to address the recommendations included in a report released in March 2022 for the fiscal year that ended June 30, 2021. The report included recommendations to segregate duties, reconcile ending cash and investments, and implement a purchasing policy, the release says.
Sand recommended city officials implement procedures to ensure the city’s internal controls are strengthened, including properly segregating duties, performing independent reviews of bank reconciliations, and ensuring all disbursements are properly supported, approved, and paid in a timely manner, the release shows.
The Scott County Sheriff’s Office has released a statement that it is investigating Benson “based off a financial crime,” and that the State of Iowa Auditor’s Office is assisting in the investigation. “The Scott County Sheriff’s Office does not have any information to release at this time
due to this ongoing investigation,” says the statement issued Thursday afternoon.
Copies of Sand’s report have been filed with the Scott County Sheriff’s Office, Iowa Division of Criminal Investigation, the Scott County Attorney’s Office, and the Attorney General’s Office. A copy of the report is available here.
