CIETC Audit

Auditor of State David A. Vaudt released a report on a special investigation of programs administered by the Central Iowa Employment and Training Consortium (CIETC) and Iowa Workforce Development (IWD). The report covers the period July 1, 2003 through December 15, 2005. CIETC administers several employment and training programs, including the Workforce Investment Act and Promise Jobs programs. The funding for these two programs is primarily federal and was passed through IWD. IWD is responsible for the administration of the programs and certain oversight responsibilities for the providers.

The special investigation identified unallowable uses of federal funds, including excessive compensation for CIETC executive employees, improper allocation of salaries and supplemental payments to federal grants and indication of 'less than arm's length' transactions between IWD and CIETC. Mr. Vaudt reported officials of the federal funding agencies will determine any actions to be taken as a result of the special investigation, including determination of disallowed costs. The excessive compensation was paid to three executive administrative staff members at CIETC who were collectively paid over $1.8 million between July 1, 2003 and December 15, 2005. CIETC's chief executive officer, chief operating officer and chief accountant received $795,384.78, $767,575.67 and $292,226.55, respectively, during this period.

Excerpt