From the Globe Gazette

Checks and balances put in place, film office says

By ED TIBBETTS etibbetts@qctimes.com Globe Gazette

The Iowa Film Office, wracked by scandal last year, has put in place a comprehensive process governing the tax-credit program, the office’s interim director told the board of the Iowa Department of Economic Development at its monthly meeting Thursday.

Jessica Montana, the interim director since March, said the office is working closely with the state department of revenue, as well as the attorney general’s office, to ensure existing projects are audited and proper documentation is received.

“We’ve put in some checks and balances within the program,” Montana said at the meeting in Davenport.

A status report given to the board said about a third of all the projects in the program, 59 in all, have had their registration revoked.

Kay Snyder, an IDED spokeswoman, said participants decided not to take part in the program, their funding fell through or there were timing issues. None were related to improprieties.

After the scandal broke last year, five people lost their jobs at the film office and within the Iowa Department of Economic Development.

Independent auditors said there was minimal record-keeping in the program, as well as instances of questionable expenditures, including luxury vehicles.

Criminal charges also were filed against the office’s former director, as well as production company officials for allegedly inflating expenses.

Montana’s presentation was mostly an update of the previous year’s events. But she also said there is a new “standardized process” for the program, and that projects are being audited prior to tax certificates being granted.

Consistent and accurate guidance also is being given to film companies, she said, and an inventory of all film projects is being developed.

The program isn’t taking new applications, but those that had been approved prior to last Sept. 18 are being allowed to negotiate contracts with the film office.

The summary said 158 projects were in the tax-credit program, with 59 revoked.

Twenty-four have been given tax-credit certificates; 30 have had an application approved but don’t have a contract; and 45 have a contract.

Snyder could not estimate when credits will be issued to projects with contracts, but she said, “we do anticipate projects will begin to move.”

“We are in a very good place right now,” she said.

The summary said applicants for the 45 projects anticipate spending $246 million in the state. The program allows recipients to claim credits for up to 25 percent of qualified expenditures.