Further review of Iowa Finance Authority after director's ouster

The Iowa Finance Authority is undergoing another financial review, this time going back to 2011 when David Jamison became director.

CPA firm Eide Bailly will do a forensic accounting and internal control examination that covers Jan. 1, 2011, to June 30, two months after Jamison was fired based on allegations of sexual harassment, the Finance Authority announced Wednesday. The new probe, expected to cost $60,000 to $75,000, is on top of a narrower $35,000 investigation already underway.

Eide Bailly will review all of expenses reimbursed to Jamison and other employees from 2011 to 2018 as well as accounts the agency used to collect fees and other payments, the Finance Authority reported. A final report will be available by Nov. 16.

Other ongoing reviews of the agency include:

– An Eide Bailly financial review of 2016 to 2018, focusing on expense reports, credit card expenditures, use of PayPal, Jamison’s discretionary spending and a policy and procedures manual. The report, requested by the Finance Authority board, is expected to be made public in mid-August.

– A “limited review” of financial operations of the Iowa Finance Authority by the State Auditor’s Office, announced in May. The scope and timeline of this audit has not been made public.

– Gov. Kim Reynolds, who fired Jamison March 24, asked attorney Mark Weinhardt to lead an investigation of the Finance Authority work environment that led to Jamison’s firing. Weinhardt and his team, who are to be paid from $150 to $350 an hour, 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. Weinhardt has not yet billed the state for this investigation, Jared said Wednesday.


Reynolds fired Jamison based on allegations from two female employees. One woman 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 over several years.

Deb Flannery, an former Iowa Finance Authority executive, told the Des Moines Register in April Jamison asked her to resign in January 2016 after she raised questions about mismanagement and improper accounting procedures.

Reynolds’s then Chief of Staff, Jake Ketzner, acknowledged in a June hearing over unemployment benefits for Jamison that Ketzner recommended the director’s termination without doing an investigation or without hearing Jamison’s explanation. An administrative law judge decided Jamison was not eligible for unemployment benefits because he was fired for “job-related misconduct.”

The Finance Authority focuses on affordable housing and community development.

l Comments: (319) 339-3157; erin.jordan@thegazette.com

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