DES MOINES, Iowa (KWWL) — Iowa’s auditor is warning that the governor’s resolution to spend $21 million in federal pandemic reduction funds on a brand new government department software program system wouldn’t be allowed and must be deserted.
In a information launch, Monday, State Auditor Rob Sand mentioned that utilizing the federal cash to pay for Workday, a cloud-based program for the chief department’s human assets and funds, is an inappropriate use beneath the legislation.
In a letter despatched to the director of the Iowa Division of Administration, Sand suggested that the thousands and thousands of dollars used for the system was not allowed beneath CARES Act expenditure necessities.
In line with the letter, CARES Act offers that funds from the Fund might solely be used to cowl prices that:
- Are needed expenditures incurred as a result of public well being emergency with respect to the Coronavirus Illness 2019 (COVID-19).
- Weren’t accounted for within the finances most lately permitted as of Marcy, 2020 (the date of enactment of the CARES Act) for the state or authorities.
- Had been incurred through the priod that begins on March 1, 2020 and ends on Dec. 30, 2020.
In line with Sand, if the cash isn’t redeployed for a distinct objective, Iowa taxpayers could possibly be on the hook to repay the federal authorities $21 million in a while.
As of this publishing, our sister station KWWL is awaiting remark from the Governor’s workplace. Within the letter, Sand said that the Governor’s Workplace justified the expenditure by saying the next:
“With Workday, the State of Iowa will have the ability to act rapidly to help important authorities staff, giving them flexibility in numerous methods, corresponding to requesting COVID-related hardship assist, simpler methods to request Household and Medical Depart Act depart varieties, and automate processes for donating depart, and borrowing depart.”
Sand additionally famous a evaluate of the governor’s resolution to spend $448,449 of reduction funds to pay employees salaries. Whereas that act was not discovered to be a violation, Sand elaborated that the necessities for such payroll expenditures would solely be for work achieved because it associated to mitigating and responding to the COVID-19 pandemic.
“Most significantly, whether or not these circumstances are met will solely be judged in hindsight, upon an audit of the timekeeping data and supporting documentation. Which means an insufficient concentrate on pandemic by these staff, or an oblique focus, and/or an insufficient record-keeping effort, might lead to these funds additionally having to be repaid to the federal authorities. That will lead to a loss for Iowa taxpayers,” mentioned Sand.
The letter suggested the governor’s workplace to redeploy these funds to those who are “routinely” certified.
Sand mentioned his conclusions have been shared by the Treasury Division’s Workplace of Inspector Normal, which is chargeable for overseeing the suitable use of these funds.
View the full launch and letter right here: