Audit Confirms State Employees Paid $110K Without Proof of Work

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DES MOINES, Iowa -- Secretary of State Matt Schultz is accused of cutting jobs, but not the paychecks that come with them.

The allegation by Senator Liz Mathis (D-Cedar Rapids) prompted an audit and the final report shows three employees were paid after their positions were eliminated.

The total bill covered by tax payers equaled more than $110,000  Just over $90,000 of that money was paid to Jim Gibbons, the former chief deputy under Schultz.

Schultz who was in Davenport for an event couldn’t do an interview today, but on “The Insiders” back in May, he said he kept Gibbons on the payroll in place of a severance package that the state doesn’t offer.

“The practice in the state is that you can send someone home for a period of time but they have to be available for questions. In that situation, we did that," said Schultz.

Gibbons was supposed to answer questions and emails, and help Schultz with his transition into a smaller staff. However, the audit reveals that there is no evidence Gibbons did any work over those six months as his hours weren't documented.

Gibbons wasn't the only person paid money they didn't earn. Two employees who submitted letters of resignation were paid a combined $21,000 dollars after their pay was supposed to stop. Even State Auditor Mary Mosiman who worked under Schultz at the time was paid for a week of vacation she didn't earn.

Chief Deputy Auditor Warren Jenkins says Mosiman paid that money back today. Senator Mathis hopes Gibbons and others follow suit.

"Specifically, we'll be looking into how the Secretary of State can rectify this situation. That's one thing. Overall, I believe that tax payers should be dialed into taking a look into how their funds are being spent.

An official for Secretary Schultz sent WHO-TV 13 a brief statement in response to the audit on his behalf.

“There is nothing new here.  What i have consistently maintained is that I acted on the advice of DAS, which was shown by the state auditor`s office.  The restructuring of the office saved the taxpayers over a quarter of a million dollars and those savings can continue in the future.”

WHO-TV 13 News reached out Jim Gibbons for comment but he did not return our calls.

Jenkins says it's unlikely all of the money will be paid back because it's difficult to determine how much money Gibbons should pay because none of his work, if any was completed, was documented.


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