8/7/2019 Iowa State Auditor's press release on Eastern Iowa Center for Problem Gambling

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OFFICE OF AUDITOR OF STATESTATE OF IOWA

State Capitol Building

Des Moines, Iowa 50319-0004

Telephone (515) 281-5834 Facsimile (515) 242-6134

David A. Vaudt, CPA

Auditor of State

NEWS RELEASEContact: David A. Vaudt

515/281-5835or Tami Kusian

FOR RELEASE March 7, 2011 515/281-5834

Auditor of State David A. Vaudt today released a report on a special investigation of the

Eastern Iowa Center for Problem Gambling (Center) for the period May 1, 2007 through

April 30, 2009. The special investigation was requested by the Iowa Department of Public

Health (IDPH) as a result of concerns identified regarding the Centers administration of

contracts awarded to the Center by IDPH. For the fiscal year ended June 30, 2007, the Center

received payments totaling $509,287 from IDPH, or 98% of its total funding. The contract

awards for the fiscal year ended June 30, 2008 totaled $671,893. IDPH also provided a limited

amount of funding to the Center during the fiscal year ended June 30, 2009 which was

exhausted by the Center during April 2009.

Vaudt reported the special investigation identified $114,211.60 of improper and

unsupported disbursements. Vaudt reported certain financial records and supporting

documentation were not provided, including bank statements, check registers, payroll records

and vendor invoices. Using the limited records available, Vaudt reported $87,179.58 of

improper disbursements were identified, including estimated overpayments of $38,693.23 for

payroll, $4,872.32 for vacation payouts and $29,359.51 for travel payments to the Centers

Director, Janet Meisenbach.

Vaudt also reported $27,032.02 of unsupported disbursements were identified. The

unsupported disbursements were for charges made on a credit card issued in the Centers

name. The charges included travel related costs and purchases made at retail vendors.

Vaudt also reported payroll payments to employees of the Center were not issued in a

timely manner and several attempts to obtain access to the Centers records were met with

resistance from Ms. Meisenbach. Vaudt also reported it was not possible to determine if there

8/7/2019 Iowa State Auditor's press release on Eastern Iowa Center for Problem Gambling

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were additional improper or unsupported disbursements because sufficient records were not

available.

While IDPH did not award the Center a contract for the fiscal year ended June 30, 2009,

a limited amount of funding was provided during the fiscal year to allow the Center to cease

operations in an orderly manner. The Center ceased providing services to gamblers and those

impacted by problem gambling during the first quarter of the fiscal year ended June 30, 2009.

Copies of the report have been filed with the Division of Criminal Investigation, the Scott

County Attorneys Office and the Attorney Generals Office. A copy of the report is available for

review in the Office of Auditor of State and on the Auditor of States web

site at http://auditor.iowa.gov/1060-5880-B0P1.pdf.

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