Audit: Iowa Schools Group Lost $1M on Risky Deals

Friday, April 6, 2012

A troubled Iowa schools group lost more than $1 million in public funds on risky investments, wrongly claimed $500,000 in federal grant money and improperly allowed executives to keep computer equipment when they resigned, according to an audit report released Thursday.

The report by the office of State Auditor David Vaudt adds new details to the prior mismanagement of the Iowa Association of School Boards, a nonprofit operated with public money to provide services to school districts. Iowa lawmakers blasted the group's travel, spending and compensation for executives two years ago, but an FBI investigation ended without criminal charges filed.

The group's board asked Vaudt in October 2009 to review its financial statements after a "significant and rapid decline of association resources in the last five years." Thursday's report said auditors delayed their review while the association went through additional management turnover and turmoil in 2010, got reorganized and responded to a variety of other investigations first.

Read more