Johnston accounting clerk stole more than $13,000, state audit finds

More than $13,000 in city funds were not properly deposited by Johnston's former accounting clerk, a special audit released Monday found.

Teresa Osburne was fired by the city in July after an internal investigation found she had falsified records, supplied false information and stole public funds, according to a news release from the city. The State Auditor's Office performed a special audit at the request of city officials.

According to the audit, Osburne failed to deposit $13,569.66 from various city funds, including:

$10,414.66 of fines and fees collected by the library

$2,105 of proceeds from the Farmers’ Market

$850 of registration fees for senior citizen bus trips collected by the Parks Department

$170 of utility collections

$30 of collections from city tree sales

The audit also found $38.71 in personal purchases from Amazon.

"It is disappointing anytime someone you have placed your trust in violates that trust," said Mayor Paula Dierenfeld in a news release. "I want to assure our residents that we take matters like this very seriously and began an investigation as soon as a discrepancy was detected."

The investigation began in early July after someone detected "the suspicious voiding" of a $170 utility deposit from a customer's account, according to Osburne's termination letter, obtained under a public records request by the Des Moines Register. That led to the discovery of many voided or missing deposits from other city departments linked back to Osburne.

"Additionally, (the investigator) reports you admitted to taking 'some' library money but stated you were putting the money back after you were paid," the letter says. "Regardless of any intent to repay, these actions are unlawful and intolerable as a public employee for the city of Johnston."

City officials say they have improved security measures for handling city funds at the advice of State Auditor Mary Mosiman, including segregation of duties and securing employee passwords.

A copy of the state audit has been filed with the Division of Criminal Investigation, the Polk County Attorney’s office and the Attorney General’s office.

The Johnston Police Department’s investigation is ongoing, and criminal charges may be forthcoming, the news release says.