Forty-nine-year-old Tammy Thompson of Exira is accused of taking money from the city while she worked there. Thompson’s arrest follows a special investigation by the State Auditor Mary Mosiman’s office that started when a software provide to the city noticed discrepancies in the financial transactions.
“Our investigation identified $38,571 of undeposited collections, $42,431 of improper disbursements and almost $9,000 of unsupported disbursements — for a total impact to the city of Kimballton of almost 90-thousand dollars,” Mosiman says. Mosiman says it appears Thompson kept utility payments for herself.
“Several residents pay their utility bills with cash,” Mosiman says, “and our report shows that in numerous instances the cash payment was recorded on the customer’s account, but not deposited to the city’s bank account.” There were other issues the investigation found with Thompson’s handling of city funds.
“Such as checks redeemed for cash and various cash withdrawals. And then various improper purchases made with the city’s credit cart at Walmart, Sam’s Club Amazon and other vendors. Things that were purchased were personal items and not items that were used for city operations,” according the Mosiman. Thomson is charged with felony counts of first-degree theft, fraudulent practice and fraudulent use of a credit card. She turned herself-in this morning and was released on her own recognizance. Her preliminary hearing was set for September. 10th.
Auditor Mosiman says Kimballton falls under a new state law that requires a periodic review of their finances and her office did an audit in 2014. That audit raised concerns. “There was significant findings and we knew we needed to get back in relatively soon and we set up a follow up investigation, we wanted to give them some time to implement the recommendations,”Mosiman says. “This was the first time anybody had audited or done any type of financial procedures in the city of Kimballton — so we wanted to give them some time to implement our recommendations.”
Mosiman says they did a second audit in 2017 and found many of the same issues with the accounting system, along with some new ones. “The city was cautioned that they needed to provide more oversight to make sure that there are reconciliations taking place, making sure they are verifying documentation based on the credit card purchases, and just making sure there is documentation for every type of resource spent and used,” Mosiman says. She says her office makes the recommendations and it is up to the cities to follow through on them.