Iowa Workforce Development Takes Additional Action Against CIETC

Printer Friendly PDF Version

DES MOINES - Iowa Workforce Development recently reviewed CIETC's subcontract with Creative Visions for fiscal years 2004, 2005 and 2006. Through the sub-contract, Creative Visions was to provide recruitment and job placement for minority youth with severe barriers to employment, but the majority of funds were retained at CIETC to pay for staff costs unrelated to the Creative Visions project. Of the $336,000 provided to CIETC, Iowa Workforce Development concluded that over $179,000 was disallowed. As a result, CIETC has until August 12th to repay the disallowed costs, appeal the final decision or request an extension on the repayment.

“Creative Visions was unfairly deprived of funding for providing critically needed services for minority youth in the Greater Des Moines Area,” indicated Iowa Workforce Development Interim Director Dave Neil, "and we are taking immediate steps to hold the CIETC Board accountable for this misuse of funds."

Iowa Workforce Development, working in cooperation with the Iowa Attorney General's Office, will vigorously pursue the repayment of funds as permitted by the federal Workforce Investment Act (WIA). CIETC may not use current federal funds to repay the disallowed costs, and, as a result of the federal legislation, the Local Elected Officials and the counties or communities they represent must repay any misspent funds if CIETC does not have the financial resources to do so. The CIETC Board of Directors is the same operating unit as the Local Elected Officials Board whose members are appointed designees by the counties of Boone, Dallas, Jasper, Madison, Marion, Polk, Story, Warren and the City of Des Moines.