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State Requests Change to 2020 Audit After Treasury Review of Iowa’s Use of COVID Funds
Treasury said $448,448.86 in questioned payroll costs were allowable after reviewing state records, while Iowa officials seek to amend the audit report.
On Tuesday, the U.S. Department of the Treasury determined Iowa's Audit Finding 2020-006 was "not sustained," concluding that nearly $450,000 in questioned COVID-19 payroll expenses were allowable.
Iowa Department of Management Director Kraig Paulsen sent a letter to State Auditor Rob Sand on Wednesday requesting an amendment to the Fiscal Year 2020 Statewide Single Audit Report to reflect Treasury's determination.
Paulsen argued that maintaining the uncorrected finding creates a "material risk of adverse consequences for Iowa on future federal awards" and misrepresents the state's compliance standing in the Federal Audit Clearinghouse.
Refusing the request, Sand stated his office stands by the original report and will not amend it, claiming the "new administration's six-year-late retroactive acceptance" does not change historical facts.
The auditor alleges the Treasury's reversal is politically motivated, citing a 2021 decision under the Biden administration that supported his initial findings and called for returning the funds.