Iowa Auditor of State Rob Sand has released the results of a special investigation into the City of Spencer, detailing more than $46,000 in misused or mishandled public funds tied to the city’s former finance assistant, LaVonne Bell.
Sand held a news conference yesterday afternoon to outline the findings, which cover the period from January 2018 through June 2024.
Sand said the investigation was launched at the request of city officials after concerns surfaced about Bell’s handling of landfill and dumpster‑rental revenue, payroll, and credit‑card transactions.
According to the Auditor’s report, investigators identified $38,767.56 in landfill fees that were collected at the Northern Plains Regional Landfill but never deposited into the city’s bank account. The report states Bell was responsible for recording landfill receipts, preparing deposits, and taking them to the bank. A comparison of landfill tickets to the city’s accounting system revealed the missing funds.
Sand said Bell admitted to taking the money.
The report also identifies $7,141.76 in improper disbursements, including unauthorized payroll, excess leave payouts, and personal charges on the city’s credit card. Another $188.81 in reimbursements lacked documentation.
Sand said Bell acknowledged the theft during an interview with investigators.
Sand emphasized that the misconduct was enabled by weak internal controls.
He said Bell processed her own payroll, handled landfill deposits without oversight, and used a city credit card with no independent review.
Sand also noted that undeposited landfill fees increased sharply after Bell’s supervisor left the city in 2023.
The Auditor’s Office issued several recommendations, including stronger segregation of duties, regular reconciliations of landfill and dumpster‑rental revenue, and ensuring all disbursements are properly supported and approved.
Sand said Spencer officials have already begun implementing improvements.
The findings have been forwarded to the Clay County Sheriff’s Office, the Iowa Division of Criminal Investigation, the Clay County Attorney, and the Iowa Attorney General for review. Sand declined to speculate on whether criminal charges will follow.
A full copy of the report is available on the Auditor of State’s website.
