(Radio Iowa) – The state auditor’s office has examined operations in the town of Zearing after the city’s former clerk missed two deadlines and the city was unable to collect property taxes for a year. Zearing City Clerk Karen Davis was fired in July of 2022 after she failed to file the city’s budget with the State. It was a 191-thousand dollar hit to the budget for the town of about 500 residents, because no property taxes could be collected. Residents of Zearing asked the State Auditor’s Office to review how their town’s finances are handled.

The general conclusion from the State Auditor’s report is that the Zearing City Council needs to exercise additional oversight of the city’s finances. The review found the city’s balance sheet was not kept up to date and one city employee was responsible for the city’s payroll, for handling cash and checks paid to the city and for paying all the city’s bills.

The State Auditor’s staff also reviewed when city funds were used to buy fuel and other items from a business owned by a member of the city council. The report concludes 72 charges were not properly supported with an invoice.