April 24, 2014

State audit shows Creston Water Works GM took $90,000 in improper pay

A city employee in southwest Iowa who was placed on administrative leave back in November is accused in a state audit of taking nearly $90,000 in pay and property he wasn’t entitled to receive. The audit covered actions by Creston Water Works Manager Steve Green.

Chief Deputy Auditor Warren Jenkins says the report has been turned over to state and Union County authorities for potential criminal prosecution. “The primary finding was the general manager was paid almost $80,000 that he was not entitled to, in our opinion,” Jenkins said. “The main component was about $50,000 of additional pay and retirement contributions for doing inspections of Water Works projects, which he would be expected to do under his job title of general manager.”

The audit shows Green accepted the additional pay for inspections of two projects for which a separate inspector had been hired. Green also collected over $30,000 in unauthorized vacation payouts, according to the audit. The audit also claims Green made improper petty cash reimbursements to himself and others for meals, travel, and prescription medications.

The State Auditor’s office reviewed materials dating back to July 2005. Jenkins says the audit was launched after a private CPA firm identified the unauthorized vacation payouts for Green. After he was placed on administrative leave, the audit states Green requested he be allowed back on the staff long enough for him to resign. The board governing the Creston Water Works, however, did not taken action on that request.