MASON CITY – Nearly $110,000 in improper disbursements were made to Mason City schools employees, an audit released this morning shows, prompting a yet-to-be-released separate special investigation report.
According to a report from the state auditor’s office:
Auditor of State Mary Mosiman today released a reaudit report on the Mason City Community School District (District) for the period July 1, 2014 through June 30, 2015. The reaudit also covered items applicable to the years ended June 30, 2016 and June 30, 2017. The reaudit was performed at the request of a District official pursuant to Section 11.6(4)(a)(2) of the Code of Iowa.
Mosiman reported the reaudit for the period July 1, 2014 through June 30, 2015 identified $109,073.24 of improper disbursements, including $68,678.26 of improper vacation payout costs. The improper vacation payouts identified were issued to 5 former employees.
Mosiman also reported the improper disbursements identified include $40,394.98 of improper salary costs for payments made to the District’s former Business Manager John Berg and former Human Resources Director during the fiscal years ended June 30, 2016 and 2017. The improper payments were a result of unauthorized salary increases, improper salary amounts, and related benefits.
Mosiman also reported additional concerns were presented subsequent to completion of the reaudit, which related to prior fiscal years. Because the additional concerns were outside the scope of the reaudit, a separate special investigation report will be issued pending the outcome of additional procedures performed.
Mosiman recommended the District review various Board policies to ensure they are appropriate, complete, and properly followed and strengthen termination benefit policies by including specific terms of payouts. The District should also ensure any vacation payouts are approved by the Board, are mathematically accurate, and comply with the established Board policy. In addition, the Board, or a designated Board member, should perform an independent review of payroll to ensure approved salary increases are properly calculated. The District responded favorably to the recommendations included in the reaudit report.
http://northiowatoday.com/wp-content/uploads/2017/08/1530-4131-T00Z.pdf
FROM THE REPORT:
On June 15, 2015, the Board approved a service contract for John Berg, the former Business Manager/Board Secretary, with an annual salary of $65,000.00. However, on January 7, 2016, the former Superintendent made a retroactive contract adjustment without Board approval to increase Mr. Berg’s salary to $75,000.00 annually, a 15.38% increase. The District provided a copy of an updated service contract signed by the Board President on January 8, 2017; however, according to our discussion with the Board President, she was not aware of the contract adjustment and did not physically sign the amended contract. We determined the Business Office had an electronic signature for the Board President on file. Use of an electronic signature is discussed further in “Finding (D)” of this report.
On June 20, 2016, the Board approved a 3% raise for non-bargaining staff, including administrative personnel, for the 2016-2017 school year. Based on review of the 2016-2017 service contract for Mr. Berg, his annual salary was $82,250.00. As a result, he received a 26.54% increase from his previously approved salary of $65,000.00 which is well above the approved 3% increase. This contract was not presented to the Board for approval; and, although it contained the Board President’s signature, she was not aware of it and did not physically sign this contract.
In addition, Jodie Anderson, the HR Director, was hired at a starting annual salary of $80,000.00 for the 2015-2016 school year, which was to be prorated to $76,000.00 because she started on July 20, 2015. This contract was not presented to the Board for approval and the electronic signature for the Board President was used to sign this contract. Ms. Anderson was subsequently paid $80,000.00 for the 2015-2016 school year. For the 2016-2017 school year, Ms. Anderson’s service contract was increased to $87,750.00 annually, a 9.69% increase from the previous year. This contract was also not presented to the Board for approval, and the electronic signature for the Board President was used to sign this contract, as well.
We are unable to determine who applied the electronic signature to the contracts.
If all of you care so deeply than why are you not going out there and involving yourself, rather than sitting online and complaining to the World Wide Web?
City government is taking advantage in more than one area. Why are the slum lords not being fined and forced to fix and clean up their properties. Yet if I go on vacation and the guy I hire doesn’t weed eat for a few weeks, I get a 90 dollar ticket? I have turned in hardy many times due to a tree falling on my property, and having over a foot of grass next door. The city has done nothing, yet a complaint is made about anyone else and they have five days to comply? It’s time the citizens of this town/county stand up and demand proper representation. Hold people accountable, if they work for the government or not.
Elliot Ness – Cookin the BOOKS !
John Dillinger never got that much money when he robbed the 1st National Bank in Mason City – nothing really transparent about pubic services – what you don’t know will hurt you.
In the private sector we call this THEFT – but luckily the electronic signature person will be blamed – whew ! That was a close one !
Public servants -all government NON wealth producers sponging off the private sector who they govern over — When and how did they take control over us ? Answer /politicans and unions – they are now at present time our rulers.
As a taxpayer, how do we get charges filed against those involved. Is there a recourse to get the money back?
Make sure to contact the County Attorney. He has the case now and charges are completely up to him.
I want to know why none of the media outlets including this one has not tried to contact Micich for a statement. Is she one of your team members? You are all biased and corrupt.
How do you know she hasn’t been contacted? Are you close to her? She was practically ran out of here at gunpoint, all the while still getting the last laugh on MCCSD board. No wonder she’s scarce.
Well if you read enough which apparently you don’t they’ll make reference to it in an article. Haven’t seen mention of it anywhere. This isn’t a milk money story bud. Lets get with the program and issue a warrant. It wasn’t the media who ran her out so quit standing up for them. Lift the fog before you open your mouth.
Remember when the MCHS student had the police called and was charged with theft for taking an extra brownie at lunch? Hmm
Or the 2 kids charged with felonies for removing bark off a tree?
HAAS AND STECKMAN WE’RE AGAINST LETTING ANITA GO AND AGAINST THIS AUDIT. REMEMBER TO LEAVE THEIR NAMES BLANK AT THE POLLS
the only true crime here is the signature forgery by the person who did not have school board (president’s) ok. That is were the crime happen. The others just accepted what was given them.
If you receive stolen property, you are guilty of receiving stolen property and should be punished accordingly! These people are trusted with tax payer funds and should be held to a higher standard.
Jodi is awesome and stuck her own neck out for the people of Mason City, even when threats and personal safety came into play. THIS IS A COUNCIL PERSON for MC. She has some very powerful friends behind her, and many businesses. They are tired of the corruption and will effect elections.
I think criminal charges should be filed seeking felony convictions, and reimbursements to the school including interest legal fees and court costs. Then the money can be used for the students like it should have been originally!
Why would anybody vote to give these people more money? Between wages and waste, its clear they get way to much now.
Lets all remember the difference between blue collar and white collar crime. Those responsible will get a slap on the wrist, and never pay restitution. Yet if I had stolen money like this from a place I worked, id be thrown in prison.
I think its more a difference between Public and Private funds. There is no cap or for that matter, oversight to public funds.
Public funds are spend and then collect the money.
Private is collect and then spend
A very big difference
Someone call Betsy DeVos. This district could be her poster child for privatizing education. Betsy, please come to Mason City Iowa for a press conference!
In lieu of charges, perhaps all guilty parties involved should stand trial in Central Park, and allow all the city’s property owners to stone them. Just like biblical times. We will never get the money back, but at least then when could get some release for our anger.
Thanks to Jodi for her efforts to drill down into the swamp of the
Recent MCSD administration tactics leading to thefts of public funds
discovery. So now, this School Board and the one in the making
has the DUTY to pursue legal action to achieve full payback of all
of this theft money and demand that criminal charges be filed
by the CG County Attorney. Then clean up the Board’s weak
over site of the MCSD operation.
I agree. Reign in the Admin Building and drain the entitled swamp in there. Make it transparent for perhaps the first time in its history. As a sign of good faith, the board should shut down the ISL/PPEL taxes voters approved back in 2013. Obviously, that money was fed into Anita’s swamp and is not truly needed anymore. If it is, pitch it to the voters again and see if they go for it.
That amount of misappropriated money would sure buy a lot of school supplies. It’s a shame that teachers are spending their own money on these supplies. Thanks, Branstad, for making education in Iowa such a low priority. Hope this isn’t just the tip of the iceberg.
HAAS AND STECKMAN SHOULD BOTH BE LEFT BLANK. HAAS HAS SAID PUBLICLY HE COULD DO BETTER THAN OUR CURRENT BOARD. HE HAS ASPERATIONS OF BEING BOARD PRESIDENT AND PLANS TO BRING DOUG CAMPBELL ALONG WITH HIM. LORD HELP US IF THAT HAPPENS! I WOULD SAY OUR CURRENT BOARD IS DOING A FANTASTIC JOB AND I HOPE THEY GET THEIR PROPER CHANCE TO SEE THIS THRU WITH THE NEW SUPER.
Now the people know why Jodi should have been elected councilwoman.
Just shut up and go out and earn more money for the kids, you know, over 50.000.000 a year for the Mason City School district, and ya know, its for the kids!
It would be over 50.000.000 a year if there were no kids!
No, sad, the money paid in salaries is for the employees. Find a school district of comparable size to Mason CIty’s and look at the salaries there. All smaller schools are at the mercy of the big schools because the bigger schools pay more money. Take a look at small districts and you will find many 1st or 2nd year teachers. Once they have established themselves, they move on. Now, without collective bargaining, it is going to get worse. Mason City has an enlightened school board. They wouldn’t be offering the salaries they do unless they feel the teachers’ are worth it. You do know that school board members pay taxes too, don’t you?
It’s easy to give other peoples money away, and then not be responsible for it. Government entities do it all the time.
I read how a school board candidate ALAN STECKMAN was criticizing this school board for going after this audit. He really layed it on thick. Now look what has come out. A vote for STECKMAN is a vote FOR more corruption, clearly! Don;t fill in the circle next to this guys name .
Am I to assume that since there was a special audit requested and significant misappropriations ($109K) identified that someone will be going to jail? It’s sad but another $109K needs to be spent prosecuting this corruption. I know of someone’s IPERS retirement account that can pay for the legal prosecution costs.
First we have to get the County Attorney to investigate and bring charges. This case should be a no-brainer, but………
I read this as this is round 1. They are now investigating again on other issues. I would think that means round 2 is coming. MORE MONEY STOLEN is what it translates to.
Way to go Jodi Draper.
AMEN!!!
AMEN too!