IOWA CITY, Iowa (AP) – A state audit has found major problems with how some Iowa state agencies spent tens of millions of dollars on information technology contractors. The state auditor’s report released Wednesday found cost overruns, excessive use of contractors, large hourly payments and questionable relationships between agencies and IT firms.

The report looked at major IT projects in the Iowa Department of Corrections, the Department of Administrative Services and the Department of Revenue dating back to 2000. It found that Corrections improperly awarded a no-bid contract to Advanced Technologies Group to develop its offender management program.

The report said Revenue repeatedly extended its contract with Terradata for its Tax Gap program. Meanwhile, two top Revenue officials went to work for the company before a mandatory two-year waiting period was up.