DES MOINES, IOWA (February 24, 2026) — The House Government Oversight Committee voted to approve a Majority Report detailing the investigation into the Iowa Judicial Branch’s misallocation of approximately $25 million in court debt funds. The report, which covers Fiscal Years 2021 through 2024, describes a pattern of financial mismanagement, three years of concealment from the public, and a failure by the State Auditor to conduct necessary oversight.
Representative Charley Thomson (R-Charles City), Chairman of the House Government Oversight Committee, authored the comprehensive Majority Report.
"In short: the Judicial Branch knew in 2021 [about the misallocation], the Auditor knew in 2022, the Legislature was told in 2024 — and the public paid the price throughout," the report states.
While the state’s General Fund was overpaid, critical programs were shortchanged, including the Road Use Tax Fund (shorted $10.4 million), the Victim Compensation Fund (shorted $3.7 million), and the Juvenile Detention Home Fund (shorted $3.5 million).
The report is particularly critical of State Auditor Rob Sand’s role in the crisis, citing a "stunning abdication of oversight responsibility by the State Auditor's Office."
"State Auditor Rob Sand's office was notified of the issue on October 7, 2022. His Chief of Staff responded that they would 'take it from here.' They did nothing of the sort. [...] Auditor Sand's comments to the Committee leave him in no danger of being confused with some fearless crusader for the general welfare of Iowans."
Chairman Thomson’s report highlights the following major conclusions:
- A "Deliberate Pattern of Concealment": The Judicial Branch was aware of issues in 2021 but did not notify the Legislature until September 2024, instead choosing to "quietly fix the problem itself" by hiring consultants who were not certified public accountants.
- A "Stunning Abdication" by Rob Sand: The report lambasts the State Auditor for his "decision to defer rather than investigate," which Chairman Thomson argues "prolonged the harm to Iowa citizens and the programs that serve them."
- Unanswered Questions: To date, "no one can state with credible certainty... whether any funds were improperly diverted to private hands."
The Majority Report concludes that "the State Auditor's decision to defer rather than investigate prolonged the harm to Iowa citizens [...] The citizens of Iowa deserve better. The victims who were supposed to receive compensation deserve better."
You can view the full report HERE. The House Government Oversight Committee voted to approve the report 6-4.
