Former Iowa day care director accused of stealing thousands - KWWL - Eastern Iowa Breaking News, Weather, Closings

Former Iowa day care director accused of stealing thousands

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A special investigation concludes that Kristine Daniel at Tama County Day Care, Inc. improperly made $278,362.58 worth of purchases.

Tama County Day Care, Inc. is also known as Kids' Corner.

This includes unsupported disbursements, undeposited collections, and forgone grant revenue.

Former Executive Director, Kristine Daniel, is accused of making these purchases between December 8, 2009 through May 31, 2016.

This is all according to a report released by Auditor of State Mary Mosiman.

Documents show $55,523.00  worth of purchases on credit cards were primarily from Amazon, Walmart, and Sam’s Club.

 $56,369.24 in unauthorized payroll and reimbursements issued to or for Daniel.

$5,140.53 of penalties and interest incurred for non-payment of payroll taxes to the federal and state governments; and $3,649.52 of purchases from various vendors. 

 $63,638.29 of undeposited collections identified consist of cash payments from parents for childcare services which were recorded in Kids’ Corner’s accounting system but not deposited to Kids’ Corner’s bank accounts, and the $94,000 of forgone grant revenue consists of funds Kids’ Corner could have received through the Iowa Department of Education to supplement its grocery purchases for meals served.

According to representatives of the Iowa Department of Education, notices sent to Daniel stating Kids’ Corner’s participation in the program would be terminated if the application was not renewed did not receive a response.

As a result, Kids’ Corner was removed from the program and received no additional payments after October 17, 2014.

Mosiman also reported it was not possible to determine if additional amounts were improperly disbursed or if additional parent payments were not properly deposited because adequate documentation was not available.

The report includes recommendations to strengthen Kids’ Corner’s internal controls and operations, such as improvements to segregation of duties, requiring detailed supporting documentation for all disbursements, and designating an independent person to reconcile Kids’ Corner’s accounting records to the bank statements.

Copies of the report have been filed with the Tama County Sheriff’s Office, the Iowa Division of Criminal Investigation, the Tama County Attorney’s Office, and the Attorney General’s Office.

Click here to see the whole document.

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