Capital Clicks

State agency’s financial reporting cited by state auditor

By: - February 18, 2020 9:58 am

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.

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Clark Kauffman
Clark Kauffman

Deputy Editor Clark Kauffman has worked during the past 30 years as both an investigative reporter and editorial writer at two of Iowa’s largest newspapers, the Des Moines Register and the Quad-City Times. He has won numerous state and national awards for reporting and editorial writing. His 2004 series on prosecutorial misconduct in Iowa was named a finalist for the Pulitzer Prize for Investigative Reporting. From October 2018 through November 2019, Kauffman was an assistant ombudsman for the Iowa Office of Ombudsman, an agency that investigates citizens’ complaints of wrongdoing within state and local government agencies.