SALT LAKE CITY — The Utah State Auditor's Office says it uncovered years of financial mismanagement by the head of a taxpayer-funded nonprofit, thanks to a whistleblower who stepped forward.
Funds for iMpact Utah were intended to promote manufacturing in the state. Instead, Auditor Tina Cannon says the nonprofit's president used company finances to line his own pockets.
"The review concludes that between $1.8 and $2.8 million in public funds were misused over a three-year period by iMpact Utah, a nonprofit recipient of state and federal grant funding intended to support Utah's (Manufacturing Extension Partnership) program. Insufficient oversight by various state agencies allowed the misuse to continue over this time period without detection."
The program is administered jointly by the University of Utah and Utah State University, with funding appropriated by the Utah State Legislature and passed through the Governor's Office of Economic Opportunity.
According to the report, the president of iMpact Utah used company finances to pay for "several vacations with his wife during 2023 and 2024."
"Vacations included trips to Hawaii, Las Vegas, Florida, and other destinations. Airfare, meals, lodging, rental cars and excursions (helicopter tour, snorkel cruise, luaus, shows in Las Vegas, etc.) were all charged to [iMpact Utah]. We could see no legitimate business purpose for these trips."
The report states he also used company finances for personal expenses, "including massage, personal subscriptions, Amazon purchases, a haircut, exercise equipment, etc."
"And then he was also able to funnel money off to buy a separate company," Cannon said.
The president of iMpact Utah was not referenced by name in the report. The case has been referred to investigators with the Utah Attorney General's Office for possible criminal charges.
"Anyone who’s getting a direct appropriation from the Legislature is someone who is very politically connected," Cannon said. "There isn’t anyone who has ever embezzled money in any company — private or government — who wasn’t trusted. That’s why they got the money in the first place."
According to the report, the president used iMpact Utah money to donate to three state campaigns and one federal campaign during 2023 and 2024.
"The IRS prohibits 501(c)(3) entities from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office."
The nonprofit did not respond to a request by FOX 13 News for comment.
The iMpact Utah "Team" page on its website, which previously listed staff members, is now password protected.
Other agencies involved—including the University of Utah, Utah State University, and the Governor’s Office of Economic Opportunity—were not accused of misspending money directly. However, the Auditor says they failed in their oversight responsibilities.
All three have promised stronger financial oversight going forward.