The interim head of the Iowa Workforce Development agency has fired an administrator who he says should have known about the executive pay scandal at a central Iowa job training agency.
Iowa Workforce Development interim director Dave Neil says two other workers who were placed on administrative leave earlier this spring have been cleared and can return to work. “This brings to an end a cloud that’s been hanging over this division for some time,” Neil says.
Neil became interim director after Governor Tom Vilsack fired the top two administrators in the state agency that has oversight over 16 job training programs across the state that are run with federal money. State and federal investigators are now probing the pay structure and operations of the Central Iowa Employment and Training Consortium.
Neil says audits of the 15 other job training programs are partially completed. Neil says they’re also going to audit a couple of subcontractors who worked for CIETC. Neil asked for and received the resignation of the Iowa Workforce Development agency’s administrative services division director.
Neil says the man failed to oversee subcontractors like CIETC and “failed to live up to the level of accountability associated with his duties.” Two other Iowa Workforce Development employees, including Laurie Rieck — the secretary caught dumping documents in the early morning hours after her boss had been fired, get to return to work. “Mrs. Rieck’s actions demonstrated poor judgment and timing, but were not done with malicious intent,” Neil says. “The investigation revealed no facts whatsoever that she engaged in any wrongdoing.”
Federal investigators says Rieck is not a “person of interest” in their probe of CIETC, according to Neil. Neil says the State Auditor’s office just concluded an audit of the Workforce Development agency. “The review uncovered no significant findings in regards to IWD’s financial operations,” Neil says.
“This positively positions IWD to move forward through a reorganization and streamlined internal systems.” Neil will be hiring a new chief financial officer, but Neil isn’t saying just what other reorganzation plans are in the works.