(Des Moines, Iowa) – Auditor of State Rob Sand today (Thursday), released a report on a review of the Southern Iowa Council of Governments (SICOG). SICOG is located in Creston, Iowa and serves 8 counties and cities within the 8-county area in southern Iowa. SICOG was established under Chapter 28E of the Code of Iowa.

Sand reported the review identified $4,304.66 of improper disbursements issued to SICOG’s former Executive Director for cleaning services which were not provided. The former Executive Director has subsequently pleaded guilty to fraudulent practice in the 2nd degree and received a deferred judgement.

In addition, Sand reported hours recorded on employee electronic and paper timesheets did not support the hours and salaries included on selected requests for reimbursements for programs and/or projects. In addition, SICOG does not have a written cost allocation plan in accordance with the Code of Federal Regulations.

Auditor Sand also recommended SICOG establish a cost allocation plan in accordance with the Code of Federal Regulations, “Indirect Costs Identification and Assignment, and Rate Determination for Nonprofit,” and ensure reimbursement requests are properly supported by timesheets and payroll journals.

Copies of the report have been filed with the Southern Iowa Council of Governments, the Iowa Economic Development Authority, and the Iowa Department of Transportation. A copy of the report is available for review on the Auditor of State’s website at Audit Reports – Auditor of State.