David Vaudt announced today that he is resigning as Iowa’s state auditor to become chairman of the Governmental Accounting Standards Board.  

After 25 years working as a CPA for a major accounting firm’s Des Moines office, Vaudt was first elected as state auditor in 2002. He won his third term in November 2010, defeating Democratic challenger Jon Murphy by roughly 56.5 percent to 43.5 percent.

Vaudt was highly critical of budgeting practices during Governor Chet Culver’s administration, when Democrats controlled both chambers of the Iowa legislature. He has generally praised Governor Terry Branstad’s budget proposals as steps in the right direction.

Branstad now has the power to appoint Vaudt’s replacement, who will serve as auditor through the end of 2014.

I enclose below press releases from the governor’s office and from the Financial Accounting Foundation, which oversees the Governmental Accounting Standards Board. I will updated this post as needed with reaction to Vaudt’s surprise departure.

Branstad, Reynolds praise Vaudt on outstanding tenure of service as Iowa’s “Taxpayer Watchdog”

April 4, 2013

Gov. Terry Branstad and Lt. Gov. Kim Reynolds today thanked state Auditor David Vaudt for his service as Iowa’s “Taxpayer Watchdog,” and wished him well as the new chairman of the Governmental Accounting Standards Board (GASB).

Vaudt, who served as Iowa’s state auditor from January 2003 to present, announced today that he is resigning his post following his election to chair the GASB.

Gov. Branstad’s statement on Auditor Vaudt:

“David Vaudt has been a dedicated public servant for the taxpayers of Iowa, and we will miss his incredible work as steward of our tax dollars. David embodied the principles of good budgeting, including not spending more than we take in, and avoiding the use of one-time money for ongoing expenses. David was an outstanding state auditor and will be very difficult to replace. I will look for a replacement who shares David Vaudt’s commitment to fiscal responsibility and knowledge of sound budgeting principles

Lt. Gov. Reynolds praised Vaudt’s commitment to rooting out budget mismanagement on behalf of taxpayers:

“Auditor Vaudt was instrumental in finding cases of budget mismanagement at both the state and local governmental levels, and ensuring those problems were fixed before causing further harm to taxpayers. In looking out for Iowa taxpayers, David Vaudt was always fair in his dealings with local and state officials. You always knew you could count on him for thoughtful audits, information and recommendations. Because of David Vaudt’s outspoken leadership on behalf of Iowa’s taxpayers, our office worked with him to put Iowa’s budget on sound financial footing for the first time in years. It has been a pleasure to work with him on behalf of Iowa’s taxpayers, and his leadership will be missed.”

Branstad notes the search for Vaudt’s replacement will begin immediately.

FACT SHEET:

Details on appointing a new state auditor are as follows:

·        According to Iowa Code Chapter 69, when there is a vacancy in the office of auditor, the governor has the duty to fill the office by appointment.

·        Until an auditor is appointed by the governor, the governor is responsible for maintaining the office and its records in the interim.

·        The person appointed by the governor will serve through the end of the current unexpired term.

·        The next election for auditor will occur during the next regularly scheduled election in 2014.

·        The salary of the auditor is fixed by the General Assembly.

Further information will be available soon for those interested for consideration in serving as Iowa’s next state auditor.

NEWS RELEASE 04/04/13

Financial Accounting Foundation Names David A. Vaudt Chairman of the Governmental Accounting Standards Board

Norwalk, CT, April 4, 2013-Iowa Auditor of State David A. Vaudt today was named as the next chairman of the Governmental Accounting Standards Board (GASB), effective July 1, 2013. The appointment was made by the Board of Trustees of the Financial Accounting Foundation (FAF), which oversees the GASB and its sister organization, the Financial Accounting Standards Board (FASB).

Mr. Vaudt was appointed by the FAF Trustees to a single, seven-year term, a change from the past practice of appointing GASB chairs to an initial five-year term with the possibility of serving a second five-year term. Mr. Vaudt will succeed current GASB Chairman Robert H. Attmore, who is retiring on June 30.

“We’re very pleased to welcome David Vaudt as the new chairman of the GASB,” said Jeffrey J. Diermeier, chairman of the FAF Board of Trustees. “David’s extensive experience with and knowledge of the challenging accounting and financial issues facing state and local governments will enable him to continue the strong tradition of leadership and transparency established by our outgoing chairman, Bob Attmore, during his nine distinguished years as head of the GASB.”

Mr. Vaudt has served as Iowa’s constitutionally elected auditor of state since January 2003. In that position, he has been responsible for auditing the state’s Comprehensive Annual Financial Report and Single Audit Report. He also has supervised the annual audit of more than 200 Iowa cities, counties, school districts, and other government organizations and agencies.

Previously, Mr. Vaudt worked for 25 years in KPMG’s Des Moines office, including 13 years as a partner. He specialized in the office’s government services practice and also served as the office’s human resources and recruiting partner. In the latter roles, he was responsible for conducting the annual reviews and evaluations of managers and staff and for leading the on-campus recruiting effort for audit professional staff. He also served as an instructor for KPMG national governmental accounting and auditing continuing education courses.

Mr. Vaudt was president of the National State Auditors Association from 2011 to 2012, chair of the National Association of State Boards of Accountancy from 2003 to 2004, and chair of the Iowa Accountancy Examining Board from 1995 to 2002. He also has served on the boards or audit committees of civic or government organizations, including the Better Business Bureau of Iowa, the Iowa Homeless Youth Centers, the Des Moines public school system, the Young Women’s Resource Center, and the Walnut Creek Family YMCA.

“All of us at the FAF look forward to working with David as we continue to pursue our objective of more closely aligning the goals and operations of the FAF, the FASB, and the GASB in the months and years ahead,” said FAF President and CEO Teresa S. Polley.

“These are challenging times for state and local governments,” Mr. Vaudt said. “I look forward to quickly engaging with the other GASB members and the wide range of GASB stakeholders, especially the Governmental Accounting Standards Advisory Council, to get a sense of the issues that they believe are the most pressing as we move ahead. I’m also looking forward to working during my transition with Bob Attmore, who has done an exceptional job of leading GASB in the past nine years.”

About the Financial Accounting Foundation

The FAF is responsible for the oversight, administration, and finances of both the Financial Accounting Standards Board (FASB) and its counterpart for state and local government, the Governmental Accounting Standards Board (GASB). The Foundation is also responsible for selecting the members of both Boards and their respective Advisory Councils.

About the Governmental Accounting Standards Board

The GASB is the independent, not-for-profit organization formed in 1984 that establishes and improves financial accounting and reporting standards for state and local governments. Its seven members are drawn from the Board’s diverse constituency, including preparers and auditors of government financial statements, users of those statements, and members of the academic community. More information about the GASB can be found at its website, www.gasb.org.

UPDATE: Senator Chuck Grassley commented via Twitter,

Auditor Vaught will be greatly missed in IA b/c his willingness 2speak out 4fiscal responsibility. Did Xcellent job& I’m sorry to see him go