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Sept. 25, 2024Hamburg, Iowa |  By: Jeremy Werner

Audit: Hamburg city officials and others misused state flood recovery funds

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HAMBURG, Iowa - A new report from the Iowa State Auditor’s office reveals that Hamburg city officials and the local economic development council misused state flood recovery funds.

The investigation, requested by the Iowa Economic Development Authority and Homeland Security, focused on funds distributed after the 2019 Missouri River flooding.

Auditor Rob Sand stated that family members of a city council member and a city employee may have unfairly benefited from programs meant to help the city recover.

The report also found that the Hamburg Economic Development Council administered the funds without a formal agreement, and $190,000 was improperly used to build two homes, including one for a council member.

The report also identified conflicts of interest and improper oversight of the grant programs.