In 2023, the University of Iowa identified and reported to the state several research expenditures by a faculty member and a staff member that were made without appropriate approvals or documentation.

The university first identified the transactions in June 2023 through its regular review of expense reimbursements. University administrators and members of the Office of Internal Audit and the Iowa Board of Regents conducted a preliminary review before requesting assistance from the Office of Auditor of State in July 2023. 

The Office of Auditor released its report today.

The audit centered on procurement card transactions and requisition requests by Dr. Calvin Carter, assistant professor in the Department of Neuroscience and Pharmacology (with a secondary appointment in the Department of Pediatrics), and Charles Searby, research assistant in the Department of Pediatrics. 

The state’s independent audit found a total of $294,913.41 of disbursements made primarily for diabetes and glaucoma research expenses that were not consistent with university protocols.

The university fully cooperated with the investigation and has accepted all recommendations in the audit. 

The university has already made significant changes to its conflict of interest and conflict of commitment policies and procedures, per a recommendation by the state auditor. In addition, the university will implement procedures to ensure sufficient documentation and explanations are provided to verify the validity of charges made to procurement cards.

The university takes seriously its fiduciary responsibility to allocate taxpayer, donor, and research dollars wisely, and has several procedures in place to ensure this happens. Procurement policies are outlined in the UI’s Policy Manual and all purchases are reviewed by highly trained staff.

When irregularities were first identified among certain financial transactions in the Department of Neuroscience and Pharmacology, the university’s internal controls worked as intended. 

Carter and Searby are both currently on administrative leave. Now that the state audit is complete, these individuals will be afforded due process available to all university employees as restitution and termination options are considered.