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State lawmakers press to get misspent funds repaid

Jul. 22, 2010 2:36 pm
DES MOINES – Frustrated state lawmakers today accused past officials of an embattled school board group of lying to cover up their involvement in an alleged probe of excessive salaries and credit card abuses that they believe will net criminal charges for the alleged conspirators.
Members of the Legislature's Government Oversight Committee told current leaders of the Iowa Association of School Boards that they are determined to recoup “every red cent” of taxpayers' money that allegedly was misspent for extravagant pay increases and improper credit card charges for trips, restaurants and other expenses.
The legislators' comments came on a day when an independent auditing firm told them they did not uncover “any smoking guns” other than the alleged financial wrongdoing that already has come to light. The auditors provided documents indicating that nearly $90,000 in questionable expenditures have not been repaid and another $184,000 outstanding loan balance has not been addressed.
“I'm confident it will all be repaid,” said Sen. Tom Courtney, D-Burlington, who expected the legislative panel to conduct additional hearings into the IASB probe after the Nov. 2 election and other lawmakers pledged to draft new laws to avert similar abuses of taxpayer money in the future.
Rep. Clel Baudler, R-Greenfield, a retired Iowa State Patrol trooper, said it appeared to him that some former IASB officials were “running some type of criminal enterprise that involved “check-kiting,” forgery, “stonewalling” board officials and lawmakers, and direct and email threats in the process of allegedly stealing thousands of public funds.
“Do I want criminal charges filed? Damn right. They stole a lot of money from Iowans,” Baudler said.
IASB, auditors and others indicated that documents pertaining to the case have been turned over to the FBI, IRS, state and Polk County officials.
The school board association earlier this year fired former executive director Maxine Kilcrease, saying she was being paid what amounted to $357,000 per year when her salary had been set at $210,000. The audit by the Des Moines accounting firm of Brooks Lodden P.C. also indicated an IASB credit card had been used by former IASB chief financial officer Kevin Schick for travel to Bora Bora and through Tahiti along with nearly $3,000 in hotel charges and other expenses.
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