An Iowa agency beset by allegations of sexual harassment and financial improprieties misspent at least $549,399 over the past two years, a state audit released Friday shows.

Gov. Kim Reynolds fired the authority’s director Dave Jamison in March following allegations that he had made multiple vulgar and sexually inappropriate comments to female staffers.

Jamison — a longtime associate of the governor’s through their prior work as county treasurers — was fired without Reynolds or her staff investigating or asking questions, according to testimony in his unsuccessful unemployment hearing.

► Support local journalism. Subscribe to the Des Moines Register.

Multiple allegations of financial improprieties surfaced following Jamison’s termination, including reports that Jamison never informed Reynolds and the other four members of the Iowa Executive Council that Iowa would save $6 million to retain its building at 2015 Grand Ave. rather than move to a leased space, which commenced earlier this year.

Former employees also alleged that the budget authority the IFA board gave Jamison was interpreted so broadly that multiple employees were allowed to spend tens of thousands of dollars on the organization’s behalf without board approval.

Friday’s audit confirmed some of those allegations. Among the key findings:

PAYROLL : At least $328,185 of payroll-related costs were excessive because they "did not meet the test of public purpose." That included pay increases for some staffers.

: At least $328,185 of payroll-related costs were excessive because they "did not meet the test of public purpose." That included pay increases for some staffers. CREDIT CARD PURCHASES : At least $26,817 was misspent by IFA employees.

: At least $26,817 was misspent by IFA employees. TRAVEL: At least $5,364 was improperly reimbursed.

The audit also concluded that the IFA board did not properly carry out its fiduciary responsibilities and it intentionally held committee meetings to avoid Iowa’s open meetings law.

Friday’s audit contrasts with a special forensic accounting report the IFA commissioned that concluded almost all the alleged improprieties were business related.

The Finance Authority was created more than 40 years ago to assist efforts to expand housing for low- and moderate-income families.

Unlike many government agencies, it is set up as an authority, meaning its board has fewer restrictions than other state agencies.

Today, it has a nearly $68 million budget, almost all of which comes from federal allocations or payments on its investments.

The IFA board has taken actions in the last year that they believe will help prevent future misspending, specifically dealing with board approval of expenses.

Interim IFA Director Carolann Jensen issued a statement Friday saying that the agency appreciates and finds value in the audit findings.

"It reinforced that unconscionable actions and poor judgments took place in the past,” Jensen said. “Moving forward, we're focused on ensuring integrity and safeguards are firmly integrated throughout IFA."

What the audit found

Here are additional findings and conclusions in the 174-page report about the Iowa Finance Authority, released Friday by Iowa Auditor Mary Mosiman. The report reviewed expenses between Jan. 1, 2016 to March 31, 2018.

New location improprieties

Hidden costs: While state entities such as IFA are not obligated to select the least costly options, the justification for a new location or building should be documented. The basis for IFA’s lease at 1963 Bell Ave. was not documented or discussed with multiple key decisionmakers, including members of the Iowa Executive Council.

Excessive space: The Iowa Department of Administrative Services recommended IFA would need 28,392 square feet of space in its 20-year outlook. Before he was fired, IFA Director Jamison signed a lease for 43,411 square feet and “it is clear the leased space exceeds the necessary amount,” the audit concludes.

Financial improprieties

Alcohol: Using an IFA credit card, Jamison purchased alcohol several times during working hours, including instances where multiple bottles of wine were purchased. State government policy prohibits employees from possessing, consuming or purchasing alcohol while they are conducted state business or on state property.

Excessive mileage: Jamison at least 14 times improperly claimed mileage from his residence in Story County to IFA, resulting in $463 in payments to him.

Sports sponsorships: At Jamison’s urging, IFA in 2017 entered into a three-year $152,248 marketing contract with Hawkeye, Cyclone and Panther Sports Properties LLC Sponsorships. Interim Director Carolann Jensen has been unable to terminate the contract, the remaining portion of which will cost IFA $103,000, the audit shows.

Vehicle leases: More than $40,000 could have been saved had IFA used a state fleet serve rather than leasing vehicles.

Food and lodging improprieties

Hotels: The audit identified $1,056 for 7 hotel charges in the Des Moines area paid on Jamison’s IFA credit card. Hotel reimbursement wasn't allowed, the audit said.

Lake Panorama Resort: IFA paid $751 for five guest houses rented for one night and a townhouse rented two nights by Jamison in March. The rentals were for an annual planning meeting that the auditor concluded could have been held in the IFA offices during regular business hours.

Meals: Explanations were missing for payment reimbursement for multiple meals and IFA representatives were unable to explain the charges, including $247 at Nicks Bar and Grill in Clive in March 2016 and another bill of $269 there a month later. The audit additionally found 12 instances totaling $2,380 where meals were purchased for groups which did not have a purpose documented.

Excessive pay