(Des Moines) The U.S. Treasury Department says it does not support a years-old audit finding that Governor Kim Reynolds improperly used federal COVID-19 relief funds to increase pay for members of her staff.
The dispute stems from a report issued five years ago by State Auditor Rob Sand’s office, which concluded that nearly $500,000 in federal pandemic relief money was improperly spent on employee salaries and bonuses. The audit recommended that the governor repay the money to the federal government.
In a newly released report, the Treasury Department rejected that conclusion, saying the expenditures were justified because the employees who received the additional compensation were dedicated to the state’s response to the COVID-19 pandemic. According to the department, the use of the federal relief funds was consistent with the employees’ pandemic-related responsibilities.
Sand, who is now the Democratic Party’s candidate for Iowa governor, says he stands by the findings of his office’s original audit, maintaining that the report accurately identified improper spending of federal relief dollars.
The Treasury Department’s conclusion effectively closes the federal review by determining that the salary and bonus payments were allowable under the COVID relief program, though the disagreement between the governor’s office and the state auditor remains.
