Auditor: Witness in ‘hush money’ probe got excess pay

A former state agency attorney who figured prominently in an investigation of 'hush money” paid to terminated state workers received improper payment for military leave while he worked for the Iowa Department of Administrative Services, according to a report issued Thursday by the Iowa State Auditor's Office.

Ryan Lamb, a former DAS attorney, received more than $22,635 of 'improper disbursements,” Auditor Mary Mosiman said. That included $13,098 of excess pay and benefits Lamb received during the period he was on military leave and $9,537 of excess vacation payout at the time he left the agency.

The overpayments came about because the DAS did not comply with the state's military leave policy.

Spokesmen for Gov. Terry Branstad and the DAS said the agency is consulting with the Attorney General's Office about the payments.

The review was performed after concerns over Lamb's leave were brought to the attention of the Office of Ombudsman, Mosiman said.

In a statement, DAS Director Janet Phipps said that during her tenure 'the department has followed state policy on military leave, time sheet approval and proper documentation for new employees as recommended by the auditor.” Phipps, a retired Iowa Army National Guard brigadier general, was appointed by Branstad after he fired the previous DAS director last year,

Lamb, who left DAS in February 2014 for a job in the private sector, was a witness in the Iowa Legislature's investigation of confidentiality agreements and payments to former state employees to prevent them from talking about their terminations.

Lamb testified that former Director Mike Carroll was 'mistaken or forgot” when he told lawmakers he was unaware of the secret deals.

Lamb said it was his idea to offer former employees money to settle disputes over terminations 'as long as the terms were legal and in the best interest of my client” - which was DAS.

State officials have acknowledged 24 confidential settlements - 10 with lump-sum payments - signed with dismissed state workers since January 2011.

The Auditor's Office also found that Lamb did not meet the experience requirements for the Attorney III position he held from December 2011 through March 2012. In addition, because his personnel file did not contain his résumé, it could not be determined if he met the minimum education, experience and special requirements for the other positions he held at DAS.

Mosiman said Lamb's base pay increased approximately 23 percent between April 2011, the date he began at DAS, and October 2013. Since the pay raise he received in October 2013 was retroactive to December 2012, the entire base pay increase was essentially granted over a period of less than 21 months through a position reclassification, pay increases awarded by Carroll and cost-of-living increases.

Mosiman's report included recommendations to strengthen DAS' controls over time sheet approval, implementing procedures to ensure compliance with the state's military leave policy and ensuring employees meet the minimum qualifications for their position.