The State Auditor’s Office will conduct a “limited review” of financial operations of the Iowa Finance Authority following the termination of its director, David Jamison.
“This decision resulted from media reports in which possible financial irregularities were identified,” Bernardo Granwehr, chief of staff for State Auditor Mary Mosiman, wrote in an email to The Gazette.
Gov. Kim Reynolds fired Jamison March 24 based on allegations of sexual harassment. One female employee filed a complaint with Reynolds, alleging Jamison made verbal comments about her breasts, asked about her sex life, repeatedly invited her to his hotel room and made sexual gestures and jokes.
Deb Flannery, an former Iowa Finance Authority executive, told the Des Moines Register last week Jamison asked her to resign in January 2016 after she raised questions about mismanagement and improper accounting procedures.
Reynolds ordered an investigation of the work environment that led to Jamison’s termination, but told reporters Monday her office would not ask the State Auditor to review the finances of the agency. The agency’s finances are audited by Eide Bailly, a private CPA firm.
“State law gives the State Auditor’s office the authority to review IFA’s finances, and the State Auditor’s Office believes such a review is necessary,” Granwehr said Wednesday.
The scope of the investigation has not yet been determined, he said. Nor does the agency know how long the probe will take.
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Because of a conflict of interest, Mosiman is recusing herself from participating in the Iowa Finance Authority review and from making any decision about the review, Granwehr said.
The review will be delegated to Deputy Auditors Tami Kusian and Andy Nielsen, he said.
Jamison was paid more than $131,000 last year to lead the agency that, among other things, facilitates affordable housing and community development programs. Appointed by former Gov. Terry Branstad, Jamison took over leadership of the Finance Authority in January 2011.
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