IASB AUDIT: Speculation Cost Group Big Bucks

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A beleaguered Iowa schools group is facing more criticism following a state audit showing it lost more than a million dollars investing in risky commodities with tax payers’ money.

The re-audit of the Iowa Association of School Boards shows the group lost more than $1 million in speculative investments and transactions. The group was told by the Iowa Attorney General’s Office that its investments may be illegal, but the IASB didn’t suspend its market speculation until during the audit.

The audit also found former employees were allowed to keep IASB property, such as computers. Employees were also paid as independent contractors, along with their regular salaries.

In 2010 the Legislative Oversight Committee investigated the IASB after allegations were raised of misspending.

Some of the former top executives were accused of spending hundreds of thousands of dollars on trips, meals and salary bonuses. Former Executive Director Maxine Kilcrease was accused of raising her salary from $210,000 a year to what would have been $367,000 a year without board approval.

The association is privately run, but does receive tax dollars.

Read the entire audit here.

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