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FEDERAL FUNDS: DAS’ Makes Loan To Itself

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Secret settlement agreements made to former state workers may not be the only problem at the Iowa Department of Administrative Services.  Emails obtained through an open records request indicate DAS may have misused federal funds.

An October, 2013 email from Rita Grimm with the Iowa Economic Eevelopment Authority indicates former DAS Director, Mike Carroll "abruptly" left a meeting, at which IDEA was trying to "resolve very significant issues raised regarding the DAS Energy Loan Program.

Read the emails

Another document explains why Grimm raised those questions.  The loan of nearly $300,000 was to DAS through a DAS administered program.  The Iowa Attorney General's Office later "concluded that DAS violated the Department of Energy's requirements by making the loan to itself."  The AG's Office recommended "repayment of the loan, including interest and administrative fees using state funds."  It also recommended DAS file a report with the DOE explaining its actions.

State Senator Janet Petersen wants the state auditor to investigate.

"It's a very big deal.  It could jeopardize federal funding," said Petersen.  "When DAS gets the money, DAS doesn't just get to decide what pot to put the money in.  There are strict guidelines they need to follow."

There's no indication the DOE knew about the loan, but a spokesperson said the DOE does monitor how the monies are used.

A spokesperson for DAS says the loan was repaid using State of Iowa Facilities Improvement Corporation (SIFIC) funds.  But other documents indicate SIFIC funds could not be used to repay the loan.


  • William Denison

    Where are all the naysayers now? You people all need to take ownership and save us all some tax money sending you to jail.

  • John

    Let me say it first governor, so you don’t wear out your lips, “I didn’t know anything about this”

    I wouldn’t want your to sprain your ankle or twist your tongue and be unable to answer the door when the FBI knocks on the Terrace Hill door with an arrest warrant…

    I can’t wait to hear what the 11 other departments have done, but then it seems the ‘dirty dozen’ agencies have all been told not to show up for government oversight hearings…

    OPEN THE DOORS BRANSTAD, everything you have done since the middle of March looks, quacks, and squats like a coverup.

  • A W (@AW60)

    “The buck stops here”….any response other than that from Terrace Hill is unacceptable. Whether or not the governor knew specifics is irrelevant. As the governor, it’s his responsibility to ensure accountability within state government. There have been too many instances of state agencies playing fast and loose with money, rules, and laws. If the governor cannot effectively manage the agencies and individuals within his administration, then he needs to go.

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