Eastern Iowa Correctional services non-profit closing in wake of state audit

CEDAR RAPIDS - A non-profit linked to 6th Judicial District Correctional Services will dissolve by the end of the year, ending programs for parolees and probationers that included mentoring and housing assistance.

The Community Corrections Improvement Association has withered since January 2014, when a state audit said the district should not provide financial support to the non-profit, founded in 1991 by former district director Gary Hinzman. District and non-profit leaders have been waiting more than a year for a second phase of the audit.

'It's too long for an entity to be sitting idle,” said Hinzman, now a board member for the non-profit. 'Until we clear up all of this, we couldn't fundraise.”

The board voted earlier this month to withdraw all grant applications and disband CCIA once grants run out later this year, Hinzman said.

The non-profit founded several initiatives, including Children of Promise, which provided mentors for children with a parent in prison, sponsored a foster grandparent program for at-risk kids and ran a youth leadership program. Other grants provided housing subsidies for needy parolees and mentoring for drug court offenders.

'These were good programs created to meet the needs of children in despair,” Hinzman said. 'Over the years, we've saved hundreds of them from going into the prison system.”

The organization also used its status as a non-profit to find money to pay for multiple correctional services facilities, including one named after Hinzman.

A Jan. 10, 2014, state audit showed $776,000 in improper disbursements by the district that provides parole, probation and other community-based corrections in six Eastern Iowa counties, including Linn and Johnson.

More than $440,000 of these disbursements came from district managers spending part of their time doing CCIA duties. The non-profit also used state vehicles, cellphones and office space for free.

'Because of decisions implemented by the former district director, including the sharing of staff and how certain costs are paid, what should be distinct lines between the district's and CCIA's operations are blurred,” auditors said about Hinzman.

The 64-page report showed $170,000 in improper vacation payouts to former employees and $40,000 in vacation paid before it was earned.

The report did not show any outright criminal activity, but Linn County Attorney Jerry VanderSanden asked the Iowa Attorney General's Office to review it. Sixth Judicial District Director Bruce VanderSanden is Jerry's younger brother.

Following the report, CCIA moved out of district space and stopped using other district assets. The district revamped vacation and sick leave and leaders started meeting more frequently with employees, many of whom had felt CCIA had too much influence.

The State Auditor launched a second phase of the audit in March 2014, results of which have yet to be released.

Bruce VanderSanden said this week he is disappointed to see CCIA go. 'I think it's a tremendous loss for the region,” he said.

His office sent an email to all district employees Wednesday announcing the change, saying leaders would 'investigate other options that might be available to continue to provide beneficial services to our clients.”