Recovery audit highlights alleged embezzlement at Iowa resort

According to a recent recovery audit, a former employee of the state-owned Honey Creek Resort in southern Iowa misappropriated nearly $3,000 from customers in order to make personal payments.

The alleged embezzlement first raised red flags in 2011 after a credit card processor alerted the resort of unusual activity. Subsequently, state auditor David Vaudt launched an accounts payable audit that revealed 10 improper fund transactions totaling $2,770 between August and October of last year.

Kathy Ewing – a former clerk for the resort who oversaw the preparation, charging and adjusting of group bills – created improper portfolios that indicated credits and refunds to certain accounts, which she processed by applying them to her personal accounts, the AP audit found.

The Associated Press reports that Ewing told sheriff's deputies that she intended to use the money to catch up on bill payments.

According to The Gazette, auditors recommended that the $58 million resort create more checks and balances, implement policies for credit card use and review supporting documentation for refunds issued. 

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