State Auditor releases report concerning improper spending

The State of Iowa Auditor’s office released a report last Tuesday, April 29,  revealing improper spending of thousands of dollars by the Postville Volunteer Fire Department.

State Auditor Rob Sand said that the special investigation found nearly $28,000 in improper disbursements and another $5,700 in unsupported disbursements from 2015 through 2018.

The special investigation was requested by city officials concerned about finances at the department, Sand said. Among the finding were more than $11,000 in public funds spent at a local grocery store and nearly $4,000 spent on cable TV. The report says some $16,000 more was wrongly or questionably spent at various vendors.

Copies of the report have been filed with the Allamakee County Sheriff’s Office and county attorney’s office, the Iowa Division of Criminal Investigation and the state Attorney General’s Office.

About the findings, the City of Postville released the following statement:

The City of Postville was concerned about irregularities in the expenditures for the Postville Fire Department when the finances were being solely operated by the Postville Volunteer Fire Department. Though the Postville Volunteer Fire Department is a private, nonprofit 501(c)(3) corporation, its sole purpose is the support of the City Fire Department, therefore, the financial dealings of the corporation are open to the public. Many meetings were held between members of the City Council, the Mayor and City Staff to identify the problem areas and work toward resolution. Some agreements were made, but there was not full resolution. In the end, the City believed that an impartial audit would be the best determination as to problems in expenditures by the Postville Volunteer Fire Department. That audit was undertaken by the Office of the Auditor of the State of Iowa and the results of that audit made public today.

The City takes no satisfaction that the audit has made the determination of $27,954.40 of improper disbursements and $5,713.68 of unsupported disbursements. However, we are hopeful that this audit will act as a guide for future financial management of the nonprofit corporation in its support of the City Fire Department and that both entities, along with the members of the Volunteer Fire Department may go forward from here working together to continue the superior firefighting and emergency services delivered to the City of Postville and surrounding townships.

The Herald also reached out to Milo Sebastian, president of the Postville Volunteer Fire Department and Ben Heitland, Fire Chief concerning the issue. Although Sebastian did not return a call from the Herald, Heitland stated that at the present time the department has chosen not to make any comments concerning the audit. With the ongoing pandemic, he said it is impossible for the department to meet as a group to discuss the situation.

Read the full 77-page report here.

The Postville Herald

The Postville Herald
335 N. Lawler
Postville, IA 52162
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Email: nadine@postvilleherald.com

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