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Former North Iowa teacher faces felony for theft from RRMR school district

ROCKFORD – A former North Iowa teacher is facing felonies for theft from the RRMR school district.

The Iowa Auditor’s office investigated the Rudd-Rockford-Marble Rock Community School District (District) for the period May 1, 2009 through January 31, 2019. The special investigation was requested by District officials as a result of concerns regarding certain financial transactions handled by a former Special Education Instructor, Deb Kadera. Kadera was responsible for processing the financial transactions of the Rudd-Rockford-Marble Rock Parent Teacher Organization (PTO) and initiating transactions for the District’s Junior class account.

Auditor Rob Sand reported the special investigation identified $18,086.94 of undeposited collections, $3,783.77 of improper disbursements from the PTO’s bank accounts, and $3,162.75 of unsupported disbursements from the PTO’s bank accounts. Improper and unsupported disbursements from the Junior class account held by the District were not identified.

The $18,086.94 of undeposited collections identified include $14,344.58 of proceeds from PTO events and $3,742.36 from Junior class fundraisers. The undeposited PTO collections identified include:

  • $11,212.43 of Scholastic Book Fair collections,
  • $2,401.80 of General Mills Box Tops collections, and
  • $730.35 of proceeds from various PTO fundraisers.

The $3,783.77 of improper PTO disbursements identified includes $2,405.00 of transfers to Kadera’s personal bank accounts and $1,258.77 of other payments. Sand also reported it was not possible to determine if additional amounts were not properly deposited or improperly disbursed because sufficient documentation was not consistently available.

In addition, Sand reported Kadera transferred $2,475.00 from her personal bank account to a PTO bank account and she issued three checks totaling $3,745.79 that were deposited in the PTO’s bank account on January 2, 2019. According to a written statement from Ms. Kadera, the checks were to pay back reimbursements she and her husband received from the PTO account.

The report includes recommendations to strengthen the PTO’s internal controls, such as improvements to segregation of duties, ensuring sufficient supporting documentation is maintained for all disbursements, and performing bank and receipt reconciliations. In addition, the report discloses the District has implemented new policies and procedures to ensure sufficient oversight is in place for all financial transactions of student activity funds.

Copies of this report were filed with the Floyd County Sheriff’s Office, the Iowa Division of Criminal Investigation, the Floyd County Attorney’s Office, and the Iowa Attorney General’s Office.

As a result of the report, Kadera has been charged with felony C first-degree theft by the Floyd county sheriff’s office.  She faces a preliminary hearing on August 14, 2020 at 8:45 AM.  Kadera is represented by Timothy LaPointe of Mason City.

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