CENTERVILLE — For more than three years the executive director of Chariton Valley Planning & Development Council of Governments in Centerville ran her own kingdom according to a state audit.

The audit released by David Vaudt, Iowa state auditor, concluded Tracy Daugherty-Miller, the executive director of CVP&DCoG, approved her own time sheets, authorized her own raises, rented office space to the council in property she or her family owned, had free reign with the council's VISA credit card and ran up a line of credit.

CVP&DCoG administrators government programs for Appanoose, Monroe, Wayne and Lucas counties.

The audit covers the period of July 1, 2007-Aug. 31, 2010. It concluded there was a lack of oversight by the board members. The audit states the board did not review Daugherty-Miller's time sheets, did not review rental agreements, did not ensure expenditures were necessary or reasonable and failed to oversee the council's line of credit.  

The audit questions what happened to more than $100,000 spent while Daugherty-Miller was in charge. The audit found $101,789.38 of unallowable disbursements of federal funds for programs administered by the Council, with $53,976.06 disbursed for improper council operations that "should not have been paid for with either federal of other Council funds" and $47,813.32 that was seen as reasonable for Council operations but "did not qualify to be paid for with federal funds."

The audit found Daugherty-Miller received $46,805, or almost half of the amount identified. Her time sheets were preprinted as in at 8 a.m. and out at 4:30 p.m. Monday-Friday, so during the work day departures or arrivals were not recorded. Daugherty-Miller recorded compensatory time on her time sheet, despite the fact she was not eligible to accrue compensatory time as executive director.

"According to Board members we spoke with, they did not authorize any salary increases for Daugherty or other employees of the Council," states the audit. "We reviewed the minutes available for the period of our review and found no indication the raises were approved by the Council’s Board."

Daugherty-Miller was making $65,000 per year on July 1, 2007. She gave herself two raises without board approval: Oct. 1, 2007 her salary rose to $68,250 and July 1, 2008 her salary increased again, to $72,345.28.

Auditors say the $17,976.53 of additional salary, the additional FICA of $885.42 and the additional IPERS of $1,028.40 on the unauthorized raises were improper disbursements. In addition, the Council paid $885.42 for the employer’s share of IPERS and $1,028.40 for the employer’s share of FICA on the unauthorized raises.   

The audit found because the Board was not reviewing Daugherty-Miller’s time sheets, they were unaware she was reporting earning and using compensatory time. Because Daugherty-Miller should not have earned or used compensatory time, $13,489.71 is included as an improper disbursement.

Daugherty-Miller often called in and said she was not coming in, and according to the Board president, she was to call him anytime she would not be in, states the audit.  

"He rarely received a call from Daugherty and he stopped in from time to time and found she was not in the office," states the audit. "According to staff we spoke with, when Daugherty was asked about her absences from the office, she would state she was ill or working from home.

"The Board president and staff could not locate any records, including leave slips or notes indicating when she was gone," states the audit. "Because no records could be located, there is no evidence to support the allegations she was not properly recording her time on her time sheets."

The audit found Daugherty-Miller used 47 hours more sick leave then she was entitled to.

Monthly rent payments made to Daugherty-Miller, her husband or her mother-in-law by the council increased between June 2007 and April 2008. The audit questions and finds the council was overcharged for rent during that time.

Daugherty-Miller’s mother-in-law, Linda Miller, owned the building at 205 N. 13th St. from Oct. 19, 2000 to Aug. 20, 2007. Daugherty-Miller and her husband purchased the building in August 2007, just one month after the Council entered into a new lease for space within the building.  

"On July 3, 2007, the Council signed a new one year lease for the second floor and the rent increased from $300 to $450 per month, a 50 percent increase. However, the amount of space specified in the lease did not increase," states the audit. "Although the lease was with Linda Miller, the payments were made to Mike Miller, Daugherty’s husband, after the sale of the property.  The first check issued to Mike Miller was for the September 2007 rent."  

The Council continued to pay monthly rent of $450 for the entire building until a new lease was signed on April 1, 2008.  The new lease, effective April 1, 2008 through March 30, 2010 was for the entire building.

Daugherty-Miller resigned on Aug. 25, 2010.