The Story County Sheriff’s Office has started a criminal investigation after a state auditor’s report flagged “significant” issues in the City of McCallsburg’s accounting records.
According to the State Auditor’s report, one person was responsible for depositing cash, checks and tax payments made to the City of McCallsburg. The same person handled payroll. Auditors reviewed records from April of 2016 through the end of March the following year. They found the general ledger for the City of McCallsburg was more than $120,000 higher than the actual balances in the city’s bank and investment accounts.
Auditors found the City Clerk occasionally wrote and cashed paychecks before the end of the pay period. The state auditor’s report also noted the city’s accounting records showed a street project and a water project in McCallsburg were claimed twice as expenses.
The state auditor’s “agreed upon procedures” report was issued in April of last year. The Story County Sheriff’s Office announced today it is conducting a criminal investigation based on the report, but provided no other details.