The Iowa Auditor of State has faulted Iowa Workforce Development for material weaknesses in its financial reporting.
According to the auditor, IWD has developed a system to track the unemployment insurance contributions made by Iowa employers. That system generates information regarding delinquent accounts and money that that’s still owed to the state.
But for the 2019 fiscal year, IWD overstated the money it still hoped to collect by $12.5 million and, at the same time, overstated allowances made for accounts where collection was doubtful by $8.3 million.
IWD also overstated its accounts payable, or money that it owes, by $7.4 million.
The state auditor said although IWD had established policies and procedures requiring an independent review to ensure its financial statements were accurate and reliable, that review did not identify the errors.
In its response to the audit report, IWD said it intends to add another layer of review to help ensure that its financial reports are accurate.