First financial review of Iowa Finance Authority shows no improper spending

Limited investigation ordered after allegations made about ousted director, David Jamison

Dave Jamison
Dave Jamison

A private firm’s review of the Iowa Finance Authority’s accounting procedures and spending has not identified major problems during the last three years of ousted director David Jamison’s tenure.

Eide Bailly, a CPA firm hired by the Finance Authority to do a “forensic accounting and internal control examination,” filed a report earlier this week saying investigators did not find any spending violations from July 2015 to May 2018 and noted the agency has proper controls to prevent fraud and abuse.

“Corporate credit card use, expense reimbursements, and travel payment voucher expenditures by the former Executive Director appear to be business-related and most of the expenditures are substantiated with appropriate documentation,” the report released Wednesday by the Finance Authority stated.

The agency hired Eide Bailly May 2 following the March 24 firing of Jamison, accused of sexual harassment by two female employees. A former executive told the Des Moines Register in April she had been forced to resign in 2016 after raising questions about mismanagement and improper accounting procedures.

The Finance Authority on Wednesday said Eide Bailly’s report disproves those allegations.

“We give any allegation of misconduct due diligence,” Interim Executive Director Carolann Jensen said in a prepared statement. “Eide Bailly was specifically tasked with investigating the financial management concerns raised by a former IFA employee. Upon reviewing the report, I’m confident that no financial mismanagement occurred, as alleged.”

However, two other financial probes of the agency are underway.

The Finance Authority last month announced it would hire Eide Bailly to do an investigation going back to Jan. 1, 2011, the month Jamison was named to lead the agency. This broader probe is expected to cost $60,000 to $75,000, on top of the $35,000 for the financial review of 2015 through 2018.

The State Auditor’s Office also is doing a “limited review” of financial operations at the Finance Authority. The scope and timeline of this audit has not been made public.


Gov. Kim Reynolds, who fired Jamison, asked attorney Mark Weinhardt to lead an investigation of the Finance Authority work environment that led to Jamison’s firing. Weinhardt and his team are investigating Jamison’s conduct and the “degree to which inappropriate conduct of Mr. Jamison was known in the Authority or elsewhere in state government and the response or lack thereof,” according to a state agreement with Weinhardt’s firm.

This report will be submitted to the Iowa Legislature.

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