State Audit Investigation Finds Improper Disbursements by Former Delhi City Clerk

A state audit investigation has found improper and unsupported disbursements by a former Delhi city clerk.

On Tuesday, State Auditor Rob Sand released a report on a special investigation of the City of Delhi for the period of January 1st, 2015 through June 30th, 2022. The special investigation was requested by Delhi city officials as a result of concerns regarding certain financial transactions processed by the former City Clerk, Lori Tucker. 

Auditor Sand reported the special investigation identified more than $66,000 of improper disbursements and over $13,000 of unsupported disbursements. Because City records were not sufficiently maintained, they were not able to determine if additional amounts were improperly disbursed. 

Auditor Sand reported the approximate amount of $66,000 of improper disbursements includes: 

• more than $29,000 of unauthorized payroll costs resulting from excess wages, excess longevity payments, unearned vacation hours, and unauthorized insurance stipends issued to Lori Tucker 
• over $1,300 of excess insurance premiums issued on behalf of Tucker
• nearly $22,000 of improper contributions to HSA account on behalf of Tucker 
• more than $300 of reimbursement checks issued to Tucker for excessive mileage and other costs 
• nearly $200 of late fees and interest to IPERS 
• nearly $13,000 of excess insurance premiums, improper contributions to an HSA account on, and improper medical expense issued on behalf of a former maintenance employee 
• and just over $600 of improper purchases made with the City’s credit card, late fees, and interest. 

The approximate amount of $13,000 of unsupported disbursements is composed of transactions for which the City of Delhi could not provide supporting documentation, including reimbursements issued to Lori Tucker, reimbursements issued to a former maintenance employee, purchases from vendors, and purchases made with the City’s credit card. 

State Auditor Rob Sand is recommending that City of Delhi officials implement procedures to ensure the City’s internal controls are strengthened, including segregation of duties, performing independent reviews of bank reconciliations, and ensuring all disbursements are properly supported, approved, and paid in a timely manner. 

No charges have been filed at this time. The report is under review by the Delaware County Sheriff’s Office, the Delaware County Attorney’s Office, Iowa Division of Criminal Investigation, and the Attorney General’s Office.

You can read the entire report on the Auditor of State’s website under Special Interest Reports.