Iowa Auditor Flags Over $436K in Mismanaged Funds at Nonprofit

Stay informed, stay empowered: invest in the journalism that invests in you. DES MOINES, Iowa — Today, Auditor of State Rob Sand released a report on a special investigation of the Children and Families of Iowa for the period of April 1, 2015 through May 31, 2022. The special investigation was requested by Iowa Workforce Development officials as a result of concerns regarding certain financial transactions processed by the former CFI WIOA Title I Program Director, Ms. Jodi Spargur-Tate. Sand reported the special investigation identified $436,179.92 of improper and unsupported disbursements. Specifically, his office identified $426,837.11 of improper disbursements and $9,342.81 of unsupported disbursements from WIOA funds and other funding sources. The $426,837.11 of improper disbursements includes: $324,586.23 in reimbursements made to Ms. Spargur-Tate. $77,729.60 in payments to Dee Dee Millard for daycare services that were never rendered. $10,013.90 in payments to U.S. Cellular. $8,340.00 in payments made to Dickerson Rentals. $6,167.08 in payments to Mid American Energy. Sand also reported the $436,179.62 of improper and unsupported disbursements. $321,520.32 are considered questioned costs in accordance with federal requirements. Sand also reported the $9,342.81 in unsupported costs were reimbursements made to Ms. Spargur-Tate using WIOA Funds and funds from other sources. The Auditor's office was unable to determine to which of the three WIOA Programs (Youth, Adult, and Dislocated Worker) these expenses were charged because adequate supporting documentation was not available. Sand recommended IWD officials implement procedures to ensure the State Agency internal controls are strengthened, including subrecipient monitoring. In addition, Sand recommended CFI officials implement procedures to ensure internal controls are strengthened, including segregation of duties and ensuring all disbursements are properly supported and approved. Copies of this report have been filed with the Polk County Sheriff's Office, Iowa Division of Criminal Investigation, the Polk County Attorney's Office, and the Attorney General's Office. A copy of the report is available for review on the Auditor of State's website at Special Interest Reports. The full report can be found attached to this article. Don't miss out on important updates! Subscribe to the newsletter for free and stay informed about local topics that matter most to you.