By HILARY FERRAND
OST news editor
hferrand@osceolaiowa.com
An audit report released by the State of Iowa points to grievous mismanagement of funds and missing payments at the Village Early Childhood Center in Osceola from January 1, 2013, through January 31, 2015. Deana Stubbe took over as the Center’s director in August 2013 and was terminated January 15, 2015.
“There were rumors around town that something like this had happened,” said Village Board Chairman Steve Waterman. “We want people to understand we immediately reacted.”
The Board was unable to comment on the case until the State Auditor’s Office had finished their investigation.
“They’ve made their report,” said Waterman. “Now it’s up to the city attorney.”
The Board fired Stubbe and contacted local law enforcement, which then contacted the Auditor’s Office. According to the report released today, Stubbe was identified as the source of discrepancies in the child center’s accounts.
“We just received the State Auditor’s report this morning. It’ll take a bit for investigation,” said Osceola Police Chief Marty Duffus.
According to the report, the state uncovered $92,367.30 in problematic transactions, including $68,533.62 in undeposited cash payments from parents to $13,095.16 in penalties and interest due to Stubbe’s late filing of payroll taxes.
“We have made a number of changes,” said Waterman, who said the Board will also be instituting additional safeguards recommended by the Auditor’s Office to prevent mishandling of future funds.
Supported by the public
Also according to the report are details on the Center’s ongoing expenses. In 2002, the Village required financing for improvements to their facility. Half of the $550,000 loan was guaranteed by Clarke County, while the city and Clarke County Development Corporation each agreed to shoulder a quarter of the debt. While it was meant to be repaid using Center revenue, a number of difficulties in addition to the missing money has driven profits down, leaving the guarantors to pay the mortgage and other expenses.
“We’ve always met payroll with that help,” said Waterman, though the center’s employees have been stuck at minimum wage. With the new developments at the Village, he’s hoping that will change.
Moving onward and upward
Parents with children at the Village shouldn’t worry about losing their childcare.
“Right now, our attendance is as good as its been in two or three years,” said Waterman. “We’re close to being filled right now. That’s the key source of any extra funds we might get.”
He also pointed to a new arrangement with the Clarke Community School District poised to raise Village revenue. The rent and service fees paid by the district are increasing with the 2017-18 school year. The district will also be providing their own preschool teacher instead of helping reimburse a Village employee.
Rural areas often struggle to provide adequate daycare for their workforce. The Village was created to provide high-quality care at an affordable cost to people living and working in Osceola.
“As long as we have the support of the good people here,” said Waterman, “we’ll be okay.”
The report is available online at the Auditor of State website, here: http://bit.ly/2tpyq6e