Editor's note: This story was updated March 6, 2025

IOWA CITY

A state auditor’s special investigation covering more than five years of transactions and activities within Johnson County Conservation has shown more than $63,000 in improper disbursements and more than $24,000 in unsupported disbursements.

The report also shows department purchases and property being utilized for personal use, and investigated charges of former Director Larry Gullett and Operations Superintendent Wade Schultz rarely working in the office for months at a time.

The investigation, led by State of Iowa Auditor Rob Sands, covered the period of January 1, 2019 through June 30, 2024.

The investigation names Gullett, the former director of the conservation department who is now deceased, and Schultz, Operations Superintendent who was placed on administrative leave in 2024.

The investigation, which was requested by Johnson County officials, comes on the heels of a $30 million bond referendum for Johnson County Conservation being approved last November.

Results of the investigation have been forwarded to law enforcement and also the Johnson County Attorney, along with the Iowa Division of Criminal Investigation.

“Johnson County is grateful for the investigative assistance provided by the Taxpayers’ Watchdog, Auditor of State Rob Sand, and the report which was issued on March 4,” Johnson County Supervisors Chair Jon Green said in a statement. “Dedicated and attentive Johnson County employees noticed something seemed off in the Conservation Department and reported it to Johnson County officials, who then requested Auditor Sand’s involvement. We thank them.”

One staff member, who was not identified, told investigators that, of Gullett’s time in the office, they “haven’t seen him much at all in the last couple of years,” dating back to 2022 in the investigation period. Schultz, staffers said in interviews, was also not in the office regularly and not for a full day. “It’s very normal for him to leave for huge extended amounts of time,” a staffer told investigators.

Examination of credit card usage and phone records, along with interviews of department staff, showed a history of county vehicles and property being used for personal reasons. There is evidence of Schultz using department materials to build a personal desk for his wife, who posted a photo of the desk on Facebook.

Improper and unsupported financial transactions were reported to be in the thousands of dollars.

Sands recommended Johnson County strengthen its procedures, establish an inventory system and perform independent reviews of credit card usage and other financial transactions,

The improper amounts include more than $38,000 in unauthorized payroll.

Gullett was replaced by Brad Friedhof as director following his death.

“We’re lucky to have Brad and will continue doing what’s necessary to strengthen oversight and financial controls,” Green told The News.

“The findings of this report are deeply concerning since public trust is essential to our mission,” Bill Waldie, Johnson County Conservation Board President, said in a statement. “The integrity of our operations and programs is a top priority.”

What happens now is unclear. The report has been sent to law enforcement and Johnson County Attorney Rachel Zimmermann Smith.

“Johnson County will continue to adopt Sand’s recommendations and any other improvements we find along the way,” Green said in a statement. “The report speaks for itself, and given that it has been referred to law enforcement, further comment is imprudent.”