ROCK IN PREVENTION'S STUDY OF ITSELF TO GET FEDERAL REVIEW

Federal officials say they are reviewing the way Iowa State University is
handling the study of a controversial, publicly funded Des Moines charity.

Two years ago, the university was given a $298,000 federal grant to study
the effectiveness of the anti-drug program Rock In Prevention, which has
received more than $1 million in taxpayer money. Most of the money for the
ISU study was in turn given to Rock In Prevention, which is working as a
subcontractor on the study of its own effectiveness.

The grant for the ISU study was provided by the federal Center for
Substance Abuse Prevention. Leah Young, speaking for the center, says it is
reviewing the grant and the manner in which the study is being conducted.
ISU and Rock In Prevention officials have said they see nothing
inappropriate in the way the study is being handled.

As The Des Moines Register reported three weeks ago, more than a third of
the money spent by Rock In Prevention last year went to its executive
director, Pat McManus, and his Mission From God Records. The ISU study was
launched after state and federal officials questioned the effectiveness of
the program, which resulted in a loss of funding.

A review of newly obtained internal records from Rock In Prevention raises
questions about potential conflicts of interest involving Rock in
Prevention and the ISU study:

* For more than a year, the two lead researchers on the ISU study worked
for Rock In Prevention as unpaid advisers on issues such as research,
programming and grant funding. One of the two lead researchers, Jerry
Stubben, who serves as an unpaid honorary board member at Rock In
Prevention, has dismissed other high-profile drug programs as "crap." A
company co-owned by the other lead researcher, Cathy Hockaday, was paid
$3,700 by Rock In Prevention for constructing shelves in Rock In
Prevention's office.

* One of the graduate students who worked on ISU's study is a former
employee of Rock In Prevention. From January 2001 through June 2002, Stacey
Parker worked at Rock In Prevention. From October 2003 through June of this
year, Parker worked on ISU's study by collecting data on the charity's
programs and effectiveness.

* When the university applied for the $298,000 federal grant, it estimated
that Rock In Prevention would use $7,439 of its $152,000 share to buy
compact discs produced by McManus' Mission From God Records. Those discs,
which include inspirational music written and performed by McManus, are
handed out to students in public schools. To date, more than $27,000 in
grant money has been spent on the compact discs.

* McManus put his 22-year-old stepdaughter, Amanda Young, on the Rock In
Prevention payroll in 2003. Young, who had a prior conviction for underage
drinking, was hired to assist with Rock In Prevention's musical
performances that discourage the use of alcohol, drugs and tobacco.

A supervisor's subsequent evaluation of her job performance noted that she
couldn't sing or play guitar and made a "very minimal" contribution to the
performances.

One of McManus' other children was paid $567 last year for playing drums at
Rock In Prevention workshops over an eight-week period. A third child was
paid just over $1,000 for three months of work in 2002.

* McManus' brother and sister serve as Rock In Prevention board members, as
does McManus. In 2002, the three siblings made up one-fourth of the board.
Since then, the board - which says its primary function is fundraising, not
fiscal oversight - has added several members.

* At McManus' suggestion, Rock In Prevention money was used to purchase
band instruments for the private Holy Trinity School in Des Moines where
McManus' son attended class and performed in the school band.

Rock In Prevention officials say they don't know the total cost of the
instruments and they declined to comment on the purpose of the purchase.
They say the instruments were ordered and then "donated" to the school, but
a school official says Rock In Prevention was reimbursed.

Purchasing equipment for a private Catholic school could conflict with
governmental guidelines on the use of public money or with tax regulations
that say a charity's spending must be consistent with its charitable mission.

* Last year, Rock In Prevention's board chairman, Dick Jacobson, routed a
donation to the family of slain Des Moines social worker Greg Gaul through
Rock In Prevention, which is an IRS-recognized charity. By passing the
donation through the charity he controlled, Jacobson was eligible for a tax
deduction.

At the Rock In Prevention board meeting where the donation was discussed,
Jacobson voted in favor of his own motion to have the charity accept his
donation. With only four board members in attendance, the motion was passed
unanimously.

Rock In Prevention's lawyer, Richard Howes, approved the donation, saying
that financial support for the Gaul family was consistent with the
charity's mission, which is discouraging substance abuse by youth.

Study researcher Stubben has said that officials at the Center for
Substance Abuse Prevention orally approved Parker's hiring and the
increased spending on compact discs. Young, of the center, said she's not
aware of such discussions.

McManus has referred to Rock In Prevention as a calling from God, and board
members emphasize that the organization relies heavily on private
contributions that aren't tied to government grants. The charity's
accountant, Mike Sharp, has praised McManus' "ethical standards" and says
that 77 percent of the money paid to Mission From God Records goes toward
actual expenses related to writing, composing, arranging and producing
McManus' music.

During the past two legislative sessions, Iowa lawmakers decided to fund
Rock In Prevention without subjecting the charity to the normal,
competitive grant-application process. Over the past year and a half, Iowa
legislators have given $600,000 in taxpayer money directly to Rock In
Prevention through sole-source, no-compete contracts.

Some lawmakers, as well as Gov. Tom Vilsack, have objected, saying Rock In
Prevention shouldn't be exempt from having to compete with other anti-drug
programs for public money. Also, some lawmakers have questioned whether
Iowa tax money should support an organization that operates in at least a
half-dozen other states.

One of Rock In Prevention's biggest supporters in the Legislature is Sen.
Jeff Lamberti, an Ankeny Republican whose father, Don Lamberti, is an
honorary board member of Rock In Prevention and has contributed $227,462 to
the charity since 1999.

Another is Sen. Matt McCoy, a Des Moines Democrat described by McManus as a
"personal friend." Lamberti and McCoy presided over the Senate this year as
co-presidents.