An independent audit of Iowa’s film tax credit program has found numerous problems, and Iowa’s Attorney General is launching a criminal investigation.

Iowa Attorney General Tom Miller

Iowa Attorney General Tom Miller

The audit, conducted by the accounting firm Clifton Gunderson LLP, found oversight problems regarding the tax credit program, known officially as the Film, Television and Video Promotion Program.

Their findings include a lack of proper invoices and documentation on 20 of the 22 film projects that received credits; changes in contracts after they were already approved without proper authorization; credits used for out-of-state vendors; purchase of items not associated with film production (such as luxury vehicles); and credits for labor that was not allowed to be included in the program.

In response to the report, Iowa Attorney General Tom Miller issued a statement saying his office, along with the Polk County Attorney’s Office, State Division of Criminal Investigation and State Auditor, will be undertaking a criminal investigation related to the Iowa Film Office tax credit program.

“We are not permitted by ethical rules to discuss the possible subjects, focus or other details of the investigation,” the statement said, later adding: “The Attorney General’s Office will work to recover any tax credits or funds obtained illegally or not in compliance with the Film Office statute. Approximately $32 million in tax credits have been issued, and we will review them in detail and seek recovery wherever they were obtained in violation of the law.”

Gov. Chet Culver suspended the tax credit program Sept. 18, after allegations of misconduct surrounding the Iowa Film Office emerged. Since the, IDED’s top two officials and the head of the Iowa Film Office have either resigned or been fired.

The full audit report can be found here.