State senator seeks apology from Iowa Secretary of State for alleged misuse of funds

CEDAR RAPIDS - A state senator is calling on Secretary of State Matt Schultz to apologize to Iowans for his 'disgraceful example of favoritism and a misuse of the powers” of the office.

Sen. Liz Mathis, D-Cedar Rapids, who chairs a Senate subcommittee with oversight responsibility for the Secretary of State Office, renewed her call for an apology after the State Auditor issued a report Thursday that Schultz's office paid political appointees more than $110,000 for little or no work.

Schultz, who is not seeking re-election, was not apologetic in responding to the audit report requested by Mathis after the Associated Press reported in April that Schultz's chief deputy, Jim Gibbons, remained on the payroll for seven months after his position was eliminated. Gibbons said he did go to the office at times and was available by phone.

There was nothing new in the report, according to a statement from Schultz.

'What I have consistently maintained is that I acted on the advice of the Department of Administrative Services, which was shown by the State Auditor's office,” he said. 'The restructuring of the office saved the taxpayers over a quarter of a million dollars and those savings can continue in the future.”

The report makes clear why Schultz 'was not eager to answer questions about his potential misuse of public funds,” Mathis said. During the 2014 legislative session, lawmakers made repeated phone calls and emails to Schultz to get basic answers about his management of the office.

Although Chief Deputy Auditor Warren Jenkins said he could not determine the value of Schultz's arrangement with Gibbons, he said Gibbons collected $90,738 in salary, vacation and benefits.

Schultz's deputies didn't submit time sheets or records of their absences, Jenkins said. That allowed State Auditor Mary Mosiman, a Republican seeking election to a full term as state auditor, to accrue $2,500 in excess vacation pay when she was Schultz's deputy. She should refund that money, he said.

In addition, Jenkins said Schultz paid two other appointees more than $21,000 after they resigned. Three other employees were paid $1,706 for two days more than the 20 required by their union contract after their jobs were eliminated.

l Comments: (319) 398-8375; james.lynch@thegazette.com