March 28, 2024

State has paid out over $2 million in settlements

DES MOINES (AP) — Iowa has spent $2.4 million in settlement payments since 2010, mostly to former employees, according to a review released Thursday by the state auditor.

Auditor Mary Mosiman reviewed the grievance process and settlement payments made between July 1, 2010, and June 30, 2014. The report was prompted by discussion during the past legislative session about settlement agreements that included confidentiality clauses.

Mosiman found 2,679 grievances were filed during that time. Most were denied or resolved without payment, and hundreds were settled by providing back pay. A total of 38 people received settlement payments totaling $2.4 million, which came from state funds.

The report says 42 current or former employees had settlement agreements with confidentiality clauses. Mosiman said there was no evidence in any of the written agreements that money was provided for confidentiality, but added that testimony provided to a legislative oversight committee showed that money was paid for secrecy in one case and offered in two other cases.

Carol Frank, a former employee with the Department of Administrative Services, gave emails to the committee showing that $6,500 of a $77,326 settlement was paid in exchange for confidentiality.

Lawmakers on the Senate Government Oversight Committee reviewed the settlement processes earlier this year, and Democratic members questioned state officials about who approved the payments and where the money came from.

Branstad signed an executive order on March 24 ending the use of confidentiality provisions once he said he learned about them in a Des Moines Register story. He has said he and his staff were not aware of settlement agreements with confidentiality clauses and were not told money was paid for secrecy.

Former Department of Administrative Services Director Mike Carroll was fired by Branstad in April when documents surfaced showing a former attorney for the department had negotiated confidentiality payments in at least one agreement and had offered money in another.

Mosiman, a Republican, was appointed last year by the governor when the previous auditor stepped down. She is running in the November election for a four-year term leading the office, which reviews finances of state and local governments.