RIVERSIDE, Iowa (AP) — The City of Riverside misspent thousands of dollars and improperly paid out thousands more in health benefits, vacation time and sick leave, a new state auditor’s report said.
The special investigation was requested by city officials after concerns were identified about the city’s flexible spending accounts offered to employees.
The investigation identified more than $64,000 in improper disbursements, including nearly $27,000 into staffs’ flexible spending accounts for health care, $24,260 in improper sick leave, $4,900 in improper vacation payouts, more than $2,000 in improper compensatory time payouts, and nearly $2,000 in improper personal-time payouts.
Analysts said they also uncovered $274,000 in disbursements paid without City Council approval, $32,000 without appropriate documentation, and $10,000 without any council approval at all.
The report blames many of the problems on a former city administrator who resigned in 2011.
Current City Administrator Rusty Rogerson, who was hired last year, said he noticed questionable spending when he examined the city’s finances. He then requested the special investigation.
The city, which has about 1,000 residents and is about 15 miles south of Iowa City, is following state recommendations to fix the problems, he said. “We’re working very hard to get things back on track.”