MONTGOMERY, Ala. (AP) — The commissioner of the Alabama Department of Veterans Affairs is resigning at the end of the year following criticisms from Gov. Kay Ivey.

Commissioner W. Kent Davis on Monday submitted his resignation which will be effective Dec. 31, Ivey’s office announced. Ivey last week asked Davis to step down, accusing his office of mishandling an American Rescue Plan grant by proposing uses that were not allowed under state and federal law. Davis said the claim was inaccurate and initially refused to resign.

Davis submitted his resignation after meeting with Ivey and senior staff members on Monday. Ivey said the meeting was “respectful, frank, and informative with both sides gaining new perspective and insight about the challenges each of us face in fulfilling our respective roles.”

“I appreciate Commissioner Davis’s record of service as Commissioner, and I appreciate him doing the right thing for our state and the future of the Alabama Department of Veterans Affairs,” Ivey said.

Brandon Miller, a spokesman for the Alabama Department of Veterans Affairs, confirmed Davis’ resignation but did not give a reason for the decision.

“Today, Commissioner Kent Davis had a very cordial and informative meeting with Governor Ivey and her senior staff. This matter has been resolved to the mutual benefit of all parties,” Miller wrote in an emailed statement.

The Alabama Department of Veterans Affairs is a state department that assists former military service members and their dependents. The commissioner is selected by the State Board of Veterans Affairs, which Ivey chairs.

Before his resignation, Ivey had called a Tuesday board meeting to try to remove Davis. Her office canceled the meeting.

State Sen. Greg Albritton, a co-chairman of the Legislature’s ARPA Oversight Committee, told The Associated Press last week that he did not know of any funds that had been improperly spent. He said he understood that some grant money had been “pulled back” by the state.

“As the finance director explained, they were not in accordance with ARPA guidelines,” Albritton said.