Audit uncovers misappropriation of Iowa town funds

A recent accounts payable audit in the town of Adair, Iowa, identified more than $119,000 in questionable spending and funds that were not deposited, according to the Chicago Tribune.

The report found that former town clerk Linda Nichols issued more than $39,000 in improper payroll checks, including checks to her son – who worked for the town on an on-call basis – for hours that he did not work. Additionally, Nichols authorized payments for five more weeks of unused vacation time than she actually accrued, according to the news source.

The audit also uncovered more than $56,000 in payments to vendors from whom the city was not authorized to make purchases, including a used car business and a customized clothing company owned by Nichols' son.

Both Nichols and her son resigned from their jobs in July of last year.

"There weren't checks and balances because of the small operation," said state auditor David Vaudt, as quoted by Radio Iowa. "Ms. Nichols had control over everything."

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