IWD calls its 2020 fix "enhanced monitoring." The fraud went on.
Summary
A special investigation by Iowa's state auditor found $436,180 in improper and unsupported payments from a federal job-training grant between 2015 and 2022 -- most of it reimbursed to the woman who ran the program, using printed Amazon shopping-cart pages as receipts, plus a relative paid for daycare that was never provided and two years of rent for her son's family. Iowa Workforce Development says it fixed its oversight of the grant in January 2020. The last of the rent payments is dated April 27, 2022.
The program and the person running it
Iowa Workforce Development (IWD) passes federal Workforce Innovation and Opportunity Act money down through regional boards to local operators; in central Iowa, the Central Iowa Workforce Development Board contracted the Youth, Adult, and Dislocated Worker programs to Children and Families of Iowa (CFI)⧉. CFI hired Jodi Spargur-Tate as WIOA Title I Program Director on April 1, 2015, giving her authority over program budgets, expense approvals, and her own reimbursement requests alike -- three duties a basic segregation-of-duties control is supposed to split among different people.
Screenshots as receipts
Auditors reviewed 802 reimbursement requests Spargur-Tate submitted over those seven years, totaling $419,895.19, and found 256 of them -- $324,586.53 -- improper, plus another 38 unsupported by any documentation at all. Sixty-seven of the improper reimbursements, worth $124,002.61, were backed by nothing more than a printed screenshot of an Amazon shopping cart⧉ -- a page that shows an order total, not proof anything was ever paid for. All told, roughly 80 cents of every dollar CFI paid her directly turned out to be improper or unsupported.
Where the rest went
The remaining money moved through four vendors. CFI paid $77,730 to Dee Dee Millard, a relative of Spargur-Tate, for daycare services -- though Millard wasn't a registered daycare provider and none of the participants named on the checks were eligible for daycare under their career plans. It paid $10,014 to U.S. Cellular for Spargur-Tate's and her family's personal phones, on top of a cell-phone stipend she already received through payroll. It paid $8,340 in rent to Dickerson Rentals LLC for an apartment used by Spargur-Tate's son and his family⧉ -- eleven payments spanning April 2019 to April 27, 2022. And it paid $6,167 directly on Mid American Energy utility accounts held in Spargur-Tate's and family members' names.
View data as table
| Reimbursements to the Program Director | 324,586.5 | 802 reimbursement requests reviewed; 256 classified improper |
|---|---|---|
| Daycare payments to an unlicensed relative | 77,729.6 | Paid to Dee Dee Millard, a relative of the Program Director |
| Personal cell phone bills | 10,013.9 | U.S. Cellular, despite an existing payroll phone stipend |
| Son's family rent | 8,340 | Dickerson Rentals LLC, April 2019-April 2022 |
| Personal utility bills | 6,167.1 | Mid American Energy, January 2017-December 2020 |
Two years past the fix
Iowa Workforce Development did not dispute the auditor's dollar figures. It disputed the timeline. Responding to the report, IWD said it had already addressed the weakness years earlier: "IWD implemented enhanced sub-recipient monitoring beginning in January 2020."⧉ The audit's own dates say otherwise: the last of the Dickerson Rentals payments -- WIOA funds, for a family member who was never an eligible program participant -- is dated April 27, 2022, more than two years after IWD says its fix was in place.
The gap the state kept flagging
The report's own conclusion is blunter than either side's public statement. Auditors found that subrecipient-monitoring problems with this exact program had already turned up in IWD's Report of Recommendations or the State's Single Audit for five of the last six years audited⧉ before this case ever surfaced. In its own formal response inside the report, IWD called the result "a significant breakdown in internal controls that allowed fraudulent activities to occur over an extended period of time." Copies of the report were filed with the Polk County Sheriff's Office, the Iowa Division of Criminal Investigation, the Polk County Attorney's Office, and the Iowa Attorney General's Office⧉; the report does not say what came of any of those referrals.
The takeaway
- A basic control was missing for seven years. The same person approved program spending, received the reimbursements, and supplied her own supporting paperwork -- Spargur-Tate -- for the entire period auditors reviewed.
- The state's own dates say the fix came late, if it came at all. IWD says its "enhanced" subrecipient monitoring started in January 2020; the last improper payment the audit traces by date is from April 27, 2022, over two years later.
- This wasn't the first warning. The auditor says a subrecipient-monitoring gap on this exact program had already been flagged in five of the previous six years' audits before this fraud was ever reported.
This piece uses $436,179.92 as the total, matching the audit's own Exhibit A summary table, which reconciles exactly to its component parts ($426,837.11 improper plus $9,342.81 unsupported); a few sentences elsewhere in the same report cite $436,179.62, a thirty-cent discrepancy that reads as a typo in the source document rather than a different figure, and this piece does not treat it as one. Separately, the auditor's "five of the last six years" finding and IWD's "enhanced monitoring since January 2020" statement are presented here as competing accounts from the same document trail -- the report and IWD's public statement do not fully reconcile on how many of those prior recommendations addressed this specific gap or exactly when they landed relative to IWD's claimed fix. No outcome of the law-enforcement or federal referrals named in the report is confirmed in any source reviewed for this piece, and Spargur-Tate is not reported here as having been charged with or convicted of a crime.
Sources(2) ▾
- Iowa Office of Auditor of State (Rob Sand), Report on Special Investigation of the Federal Workforce Innovation and Opportunities Act -- Title I Funds Awarded to Children and Families of Iowa (For the Period April 1, 2015 through May 31, 2022) (2024-12-17) — The Auditor of State's full special-investigation report -- news release, Auditor's Report letter, Investigative Summary, Recommended Control Procedures, and Exhibits A through E -- fetched from the Iowa Legislature's document server and converted to text via pdftotext -layout for page-level citation. Source for every dollar figure, date, and quoted finding in this piece: the $436,179.92 total, the $321,520.32 in federal questioned costs, the per-vendor breakdown (Exhibit A), the 802-reimbursement/$419,895.19 review of payments to the former Program Director (Exhibit B), the Dickerson Rentals payment-date range (Table 2), the discovery narrative, the referral timeline, and IWD's and CFI's quoted responses to the auditor's recommendations. A Wayback save-page-now request was made at read time and indexed within the hour. legis.iowa.gov · original document
- CBS 2 Iowa / Iowa's News Now (KGAN), New details after audit finds former nonprofit director misspent $436K on herself & family; Iowa Workforce Development pushes back on auditor's fraud report (2025-01-30) — Local TV news coverage of the report's release, carrying State Auditor Rob Sand's on-camera explanation of how the fraud was discovered and, in full, Iowa Workforce Development's own written statement pushing back on the auditor -- including IWD's claim that it 'implemented enhanced sub-recipient monitoring beginning in January 2020.' Used only for these two direct, attributed quotes; no dollar figure in this piece is sourced to this document. A Wayback save-page-now request was made at read time and indexed within the hour. cbs2iowa.com · original document
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For seven years, Iowa's federal job-training program for youth, adults, and displaced workers sent $436,180 in improper and unsupported reimbursements to the woman running it and her family, a special investigation by the Iowa Auditor of State⧉ found. It was caught only when a coworker filling in during her vacation noticed a car-repair reimbursement for a participant who didn't own a car.