State Auditor's Office Finds Over $18,000 in Improper and Unsupported Spending by Lansing EMS

Our Driftless region deserves more than postcards — it deserves a watchdog. Be that support. DES MOINES, Iowa — A special investigation by Iowa State Auditor Rob Sand found over $18,000 in improper and unsupported spending by Lansing Emergency Medical Services (EMS) and identified significant weaknesses in the agency's financial oversight and recordkeeping practices. The report, released Monday morning, examined Lansing EMS financial transactions and reporting from Jan. 1, 2019, through Sept. 30, 2025, after Allamakee County officials requested an investigation amid concerns about financial transactions and reporting practices. Auditors identified $8,461.20 in improper disbursements and $9,778.67 in unsupported disbursements, for a total of $18,239.87. The Auditor of State's Office said poor recordkeeping prevented auditors from determining whether additional improper spending occurred during the review period. "EMS records were not sufficiently maintained," the Auditor of State's Office said, noting it could not determine whether additional funds had been improperly disbursed. The investigation found $7,838.91 in improper vendor disbursements, $382.29 in improper bank fees and $240 in improper payments to volunteers. Unsupported disbursements included $4,476.44 in debit card purchases, $4,210 in payments to staff and volunteers, and $1,092.23 in payments to vendors. A significant portion of the improper spending involved holiday parties for EMS staff and volunteers. According to the report, Lansing EMS used agency funds to pay for food, beverages, gift cards and other items associated with holiday celebrations that were not open to the public. Auditors concluded the expenditures did not serve a public purpose and therefore constituted improper disbursements. Among the expenses cited were payments totaling $7,351.25 to T.J. Hunter's banquet hall, a $3,034.70 payment to the Lansing Fire Department for a Christmas party, a $1,800.44 payment to Milty's restaurant and bar, and a $793.17 payment to Shep's Riverside Bar. Auditors also identified dozens of debit card purchases for gift cards, gifts and other party-related items. EMS officials told auditors the holiday events were used to recruit, recognize and retain volunteers. They also said donations helped pay some party expenses. Auditors reviewed donation records and determined $7,553.46 in unrestricted donations could be offset against holiday party costs. After applying that offset, auditors concluded $7,838.91 in improper disbursements remained. The report also identified deficiencies in payroll documentation. Auditors found 21 staff members or volunteers received a combined $4,210 in unsupported payments because supporting records were missing. In addition, three volunteers received payments that exceeded amounts supported by tally sheets. Those overpayments totaled $240. The investigation also uncovered broader administrative and governance concerns. Auditors reported Lansing EMS failed to maintain board meeting minutes for most of the period reviewed. Of 69 months examined during fiscal years 2020 through 2025, officials provided minutes for only three months. The report also found discrepancies between income and expense figures reported on the nonprofit organization's IRS Form 990-EZ filings and amounts recorded in its accounting system from 2020 through 2024. Auditors said none of the annual income and expense reports reviewed matched the agency's accounting records and recommended EMS officials consult legal counsel. Auditors also determined a 28E agreement signed in 2007 among Lansing EMS, local governments and community organizations was never filed with the state as required by Iowa law. As a result, auditors said Lansing EMS has been operating without a valid filed 28E agreement. The report identified multiple internal control weaknesses, including inadequate segregation of duties, insufficient documentation of expenditures, inadequate oversight by EMS officials, and a lack of independent review of bank statements and reconciliations. According to the report, the treasurer controlled many key financial functions, including collecting receipts, preparing and signing checks, processing payroll, reconciling bank accounts and preparing annual financial reports. The Auditor of State's Office recommended Lansing EMS strengthen internal controls, require proper documentation and approval of expenditures, improve payroll recordkeeping, maintain board meeting minutes, ensure accurate IRS reporting, and file a valid 28E agreement with the state. Copies of the report were filed with the Allamakee County Sheriff's Office, the Iowa Division of Criminal Investigation, the Allamakee County Attorney's Office and the Iowa Attorney General's Office. The special investigation was conducted at the request of Allamakee County officials after concerns were raised by the county auditor's office in February 2025 regarding financial reporting, missing meeting minutes, holiday party expenditures and employee compensation practices. Fresh stories, delivered! Sign up for the free DecorahNews.com newsletter and stay informed, inspired, and ahead of the curve.