Audit finds improper spending in Iowa city

GRAND RIVER, Iowa (AP) — A state audit has found more than $27,000 in improper and unsupported spending in the southern Iowa city of Grand River.

State Auditor Mary Mosiman released the audit report on Thursday. The report says more than $10,700 was improperly spent, and more than $16,400 in spending wasn’t properly documented.

City officials requested the audit after they discovered alleged misspending by former city clerk Doris Loy. Loy was fired in March 2012 after officials raised concerns about the city’s finances and her job performance.

A phone message left at Loy’s home was not immediately returned.

Auditors have referred the case to the Iowa Division of Criminal Investigation and the Decatur County attorney’s office.

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