DES MOINES, IOWA (September 29, 2022) — Auditor of State Rob Sand has released the State of Iowa’s Single Audit Report for the year ended June 30, 2021. The report covers the expenditure of federal funds by all State agencies, institutions, and universities and includes a review of internal controls and compliance with federal laws and regulations.
FINANCIAL HIGHLIGHTS:
The State expended approximately $14.2 billion of federal funds in fiscal year 2021, an increase of approximately $1.9 billion, or 15.4% over the prior year. Funding directly related to the Coronavirus Aid, Relief, and Economic Security Act (CARES) and American Rescue Plan Act accounted for approximately $2.9 billion, an increase of about $600 million. Changes in non-CARES and non-loan programs included an increase of approximately $400 million in funding for Medicaid expenditures, $329 million increase for Supplemental Nutrition Assistance and an increase of $280 million for the Summer Food Service Program for Children.
Expenditures directly related to the CARES programs included $1.5 billion in additional unemployment insurance, $534.2 million from the Coronavirus Relief Fund, $317.0 million for the Educational Stabilization Fund program, and $31.0 million in CARES related supplemental School breakfast and lunch programs.
Expenditures for programs not related to CARES included approximately $4.4 billion for Medicaid, $1.5 billion in capitalization grants for clean-water state revolving funds, $792.8 million for supplemental nutrition assistance, $587.6 million for highway planning and construction, $507.0 million for capitalization grants for drinking-water state revolving funds, and $488.9 million for unemployment insurance. Although the State of Iowa administered approximately 600 federal programs during the year ended June 30, 2021, these six programs accounted for approximately 74% of total federal expenditures not related to CARES funding.
AUDIT FINDINGS:
Auditor Sand reported twelve internal-control deficiencies and two instances of noncompliance at various State agencies. The control deficiencies address issues such as lack of policies and procedures to ensure variances are identified and corrected and that funds drawn are paid out within three working days, to ensure various reports are reviewed, approved, include all the proper information and are submitted to the US Department of Labor prior to the due date, to ensure all required information is included in awards to subrecipients and to ensure departments monitor subrecipients for compliance with grant requirements, to ensure all timesheets are properly approved, and ensure policies pertaining to proper allocation of employee time are properly communicated and followed and to ensure all recoupment procedures for overpayments are followed. In addition, there were two non-compliance findings addressing questioned costs for unemployment insurance of $76,761 paid to incarcerated individuals and $98,133 in payments to deceased individuals. Auditor Sand has provided the State agencies with recommendations to address each of the findings. The recommendations and management’s responses are included in the Schedule of Findings and Questioned Costs.
Six of the findings discussed above are repeated from the prior year.
A copy of the report is available for review on the Auditor of State’s web site at Audit Reports — Auditor of State.
