The U.S. Treasury Department’s Office of Inspector General is reviewing documentation provided to justify Governor Kim Reynolds’ use of federal COVID-19 relief funds to compensate staff in her office, Deputy Inspector General Richard Delmar told Bleeding Heartland on March 14.

The State Auditor’s office concluded in November and reaffirmed this month that Reynolds used $448,449 in CARES Act funds to pay part of the salaries and benefits of 21 permanent staffers between March and June 2020 in order to “cover a budget shortfall that was not a result of the pandemic.” State Auditor Rob Sand called on Reynolds to return the money to Iowa’s Coronavirus Relief Fund before the end of 2021. The governor’s office has insisted its use of COVID-19 relief funds for staff salaries was justified.

When the State Auditor’s office published its findings in November, Delmar told Bleeding Heartland his office “has not initiated an audit of the Governor’s Office salaries and awaits resolution of this matter between the Iowa State Auditor and the Governor’s Office.”

Asked this week about the impasse between Reynolds and state auditors, Delmar confirmed via email, “We have requested documentation of the uses from the State Auditor’s Office and are in the process of reviewing it.”

State Representative Chris Hall will not seek the Democratic nomination for governor, he told Bleeding Heartland on February 7. Having seriously considered the race, he concluded it was not possible to raise the resources or name identification to run a viable campaign.

Hall added, “I care deeply about the direction of the state and Democratic Party, and hope to contribute meaningfully to both.” He has represented part of Sioux City in the Iowa House since 2011, serving in recent years as the ranking Democrat on the Appropriations Committee. He has not announced whether he will seek a seventh term in the state legislature.

Business owner Deidre DeJear is the only active Democratic candidate for governor; State Representative Ras Smith left the field last month. While other Democrats are rumored to be thinking about the race, time is running short. Candidates for governor must submit nominating papers to the Iowa Secretary of State’s office by March 18, including signatures from at least 3,500 eligible Iowa voters, with at least 100 signatures from at least nineteen counties.

Any new contender would need to put together a statewide organization before the June 7 primary. The nominee will face Governor Kim Reynolds, whose campaign had $4.78 million cash on hand as of December 31, compared to $8,547.28 in the bank for DeJear.

Prominent Democrats who ruled out running for governor last year include State Senator Pam Jochum, U.S. Representative Cindy Axne, and State Auditor Rob Sand.

Keegan Jones is a lifelong Iowan and 2013 graduate of Fort Dodge Senior High. He currently works as a financial analyst and consultant.

Against the backdrop of a conservative culture war on schools, Iowa Republican lawmakers are again determined to pass a version of “school choice,” which cleared the state Senate last year but failed to win enough support in the House.

We all remember the days when Iowa was known for having one of the country’s best public school systems. Years of inadequate funding increases that fail to meet schools’ rising operating costs have put additional strain on teachers and degraded the quality of education for our students.  

Governor Kim Reynolds now seeks an overhaul of Iowa’s education system to fix the problems she and her colleagues created. Her latest school choice proposal, Senate Study Bill 3080, is scheduled to be considered in an Iowa Senate subcommittee on February 2.

The filing deadline for campaign finance disclosures is always an exciting day for political reporters. My plan for this week was to write a series of posts about fundraising and spending for each of Iowa’s statewide races: governor, attorney general, state treasurer, secretary of state, state auditor, and secretary of agriculture.

I shifted gears after reviewing the latest reports for Governor Kim Reynolds and Deidre DeJear, the only Democrat actively campaigning for governor.

Unless things change dramatically in the coming months, Reynolds will be able to use most of her war chest to help down-ballot Republicans.

Former State Representative Mary Ann Hanusa finally gave up her Congressional ambitions and announced on January 5 she’s running for state auditor. She won’t face any competition in the Republican primary, coming out of the gate with endorsements from Governor Kim Reynolds, Senator Chuck Grassley, and Senator Joni Ernst.

Democrat Rob Sand won the 2018 state auditor’s race by 660,169 votes to 601,320 for GOP incumbent Mary Mosiman (50.9 percent to 46.4 percent). Turnout set a modern midterm record for Iowa that year. Participation could be far lower in 2022—perhaps 1.1 million to 1.2 million voters.

Whether Hanusa emerges as a strong challenger will become more clear as her campaign unfolds, but here are some initial thoughts.

Get ready for the most expensive state auditor race in Iowa history.

Rob Sand confirmed on December 7 that he’ll seek a second term in his current office. He had been considering running for governor.

Sand announced his decision in a video posted to his social media feeds.

With the state’s Comprehensive Annual Financial Report and Single Audit for the 2020 fiscal year in the rear view mirror, the State Auditor’s office has been churning out its annual “reports of recommendations” for state government agencies and other entities. The majority of reports issued so far have cited no concerns related to internal control or compliance with statutory requirements.

However, the latest report for the Iowa Department of Agriculture and Land Stewardship (IDALS), published on November 23, pointed to several practices “for which we believe corrective action is necessary.”

A news release noted that State Auditor Rob Sand “recommended the Department strengthen internal controls over receipts in certain Bureaus,” adding, “The finding discussed above is repeated from the prior year.”

That’s an understatement. Sand and the previous two state auditors have been warning IDALS about the same internal control problems for more than ten years.

Governor Kim Reynolds used $448,449 in federal COVID-19 relief funds to cover a shortfall in her office budget without documenting that 21 of her staffers were “substantially dedicated” to the pandemic response, a state audit determined.

The U.S. Treasury Department’s Office of Inspector General asked state auditors in January 2021 to review whether the spending complied with rules governing the use of Coronavirus Aid, Relief and Economic Security (CARES) Act funds. Bleeding Heartland was first to report in September 2020 on CARES Act payments supporting the governor’s permanent staffers, and reported exclusively last December on how documents were altered to make a “FY 2020 Shortfall” in the governor’s office budget appear to be “COVID-19 Personnel Costs.”

State Auditor Rob Sand warned the Reynolds administration in October 2020 that without adequate documentation, COVID-19 relief funds used to pay governor’s staff salaries might need to be repaid to the federal government. The report issued this week advised the governor to return the money to Iowa’s Coronavirus Relief Fund “for other eligible and supported uses prior to the December 31, 2021 deadline.”

The governor’s spokesperson Alex Murphy told reporters the office is “now working with Treasury to provide them documentation” to support the CARES Act spending.

That’s easier said than done.

Prominent Iowa Democrats were quick to express solidarity with United Auto Workers members who went on strike at midnight on October 14. But Republican officials were mostly silent as Iowa’s largest strike in decades began.

The work stoppage affects some 10,000 UAW members, of whom about 6,500 are employed at John Deere facilities in Waterloo, Ankeny, Davenport, Dubuque, and Ottumwa. Earlier this week, about 90 percent of UAW members voted to reject the company’s contract offer—a remarkable consensus, given that more than 90 percent of workers participated in the vote. Although Deere’s profits have increased by 61 percent in recent years, and CEO John May’s salary increased by about 160 percent from 2019 to 2020, the company offered workers only a 5 percent to 6 percent raise, with additional 3 percent raises in 2023 and 2025. Proposed changes to pensions also weren’t acceptable to most workers.

The last strike at John Deere plants began in 1986 and lasted for about five months. According to the Des Moines Register, the largest strikes anywhere in Iowa during the past three decades were a 1995 stoppage at Amana Refrigeration in Cedar Rapids, which involved about 2,000 workers, and a 2004 strike at Newton-based Maytag, involving about 1,600 workers.

The Iowa Democratic Party issued a statement supporting the Deere workers a few minutes after midnight, and many well-known Democrats added their voices throughout the day. I’ve enclosed many of those comments below.

Meanwhile, Governor Kim Reynolds, Senator Joni Ernst, and U.S. Representatives Ashley Hinson (IA-01), Mariannette Miller-Meeks (IA-02), and Randy Feenstra (IA-04) said nothing about the event directly affecting thousands of their constituents. Staff for Reynolds, Hinson, and Miller-Meeks did not respond to Bleeding Heartland’s inquiries.

UPDATE: In November 2023, a spokesperson for OCIO told Bleeding Heartland, “OCIO never executed a contract for Master Data Management in any RFP.” She did not explain why the project was shelved. However, it appears that the American Rescue Plan funds allocated for this project were not spent for that purpose. In December 2023, the spokesperson confirmed, “Master Data Management has not moved forward since October 2021.” Original post follows.

Governor Kim Reynolds has allocated $13 million from the state’s American Rescue Plan funds for a data project that has been in the works since 2019.

Last year, the governor approved a request from the state’s Office of Chief Information Officer (OCIO) to pay for the Master Data Management Program with $13 million from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. But those funds were never spent, according to pandemic spending reports and documents obtained through public records requests.

OCIO recently transferred the $13 million earmarked for the data management project back to the agency that administers Iowa’s Coronavirus Relief Fund, spokesperson Cayanna Reinier told Bleeding Heartland on September 29. She added that OCIO is “in the process of restarting” the project and “looking forward to moving ahead” with it, now that the governor’s office has approved the use of American Rescue Plan funds.

It’s far from clear this program is an eligible expense under the latest federal relief package.

The state of Iowa ended fiscal year 2021 with the largest surplus ever recorded: nearly $1.24 billion. That’s four times higher than the general fund’s ending balance of $305 million when the books closed on the previous fiscal year, and it doesn’t include an estimated $801 million in Iowa’s cash reserves and economic emergency funds.

Governor Kim Reynolds declared in a news release, “Iowa is in a very strong financial position due to our fiscal responsibility.” Her staffer Joel Anderson, who is temporarily running the state’s budget agency, commended the governor “on recognizing the importance and need for a healthy and strong balanced budget.”

But an enormous surplus is not a sign of a healthy budget or responsible decisions. On the contrary, it suggests state government should have spent more on the public services Iowans need.

Accounting problems at Iowa State University have delayed not only Iowa’s Comprehensive Annual Financial Report for fiscal year 2020, but also dozens of annual reports on state government entities.

The ongoing issues at ISU have pushed other audit work months behind schedule, Deputy State Auditor Marlys Gaston explained during a 20-minute presentation to the Iowa Board of Regents on September 15. In addition, Gaston told the governing body for Iowa’s state universities the State Auditor’s office expects to issue an internal control finding to ISU. That rarely happens for the Regents institutions and indicates that ISU’s financial statements for FY2020 included inaccurate information.

ISU switched to the Workday computer system for accounting at the beginning of the 2020 fiscal year. The subsequent challenges raise questions about what will happen when most state government agencies transition to Workday for accounting, which is supposed to occur during the summer of 2022.

Deidre DeJear made it official on August 14: she’s running for governor, “because Iowa is worth it.” The 2018 Democratic nominee for Iowa secretary of state spent several weeks on the road over the past month hearing about the challenges facing communities of all sizes. In a news release, she indicated education, small business development, and job growth would be the focus of her campaign:

The Iowa Ethics and Campaign Disclosure Board unanimously found that Governor Kim Reynolds did not violate a state ban on “self-promotion” last year when she appeared in advertisements promoting COVID-19 safety measures.

The board reviewed the “Step Up, Stop the Spread” online and television ad campaign, funded through federal COVID-19 relief dollars, after State Auditor Rob Sand asserted in a report that Reynolds violated a state law prohibiting “self-promotion with taxpayer funds.”

Less than a week after launching her Congressional campaign, State Senator Liz Mathis has eliminated any chance of serious competition for the Democratic nomination in the first district.

Mathis announced support last week from more than 100 well-known Iowa Democrats, including all recent U.S. House representatives, every current statewide official, and 48 current state legislators. It’s not just the number of endorsements that will discourage others who may have considered running for Congress in northeast Iowa. Prominent voices representing all wings of the Democratic Party are behind Mathis.

Staff in the governor’s office and Iowa Veterans Home declined to clarify why Governor Kim Reynolds fired the home’s Commandant Timon Oujiri in early May, and for months did not respond to public records requests related to Oujiri’s removal.

The mystery was revealed on July 29, when State Auditor Rob Sand released a special report showing Oujiri had received $105,412.85 in improper compensation since June 2019, including $90,027.20 of unauthorized gross wages.

The Iowa Ethics and Campaign Disclosure Board will review advertisements featuring Governor Kim Reynolds, which were funded through federal COVID-19 relief dollars.

The board’s executive director Mike Marshall told Bleeding Heartland on June 18 that some commercials from the “Step Up, Stop the Spread” campaign launched last November “are now under review by the Ethics Board.” Earlier this month, State Auditor Rob Sand asked the board to consider whether the ads violated Iowa’s law banning state officials from engaging in “self-promotion with taxpayer funds.”

Marshall said he anticipates the ethics board will discuss the matter in closed session at its next meeting, scheduled for August 12.

A special investigation by the State Auditor’s office asserted on June 3 that Governor Kim Reynolds violated Iowa law by using $152,585 in federal COVID-19 relief funds to purchase “online and televised ads containing the Governor’s voice, image, and name.”

Less than 30 minutes after the auditor’s report was published, Reynolds responded in a news release that the law “clearly allows” such use of public money in the context of a public health disaster emergency.

A few hours later, State Auditor Rob Sand defended his conclusions in a new written statement.

My non-lawyer’s reading of the relevant statutes aligns with the governor’s interpretation. But while legal points could be argued, one indisputable fact is that all parties involved should have discussed these findings prior to the report’s publication, instead of duking it out in news releases today.

State Auditor Rob Sand contends that spending $400,000 to construct permanent fencing around Governor Kim Reynolds’ official residence reflects “out of whack” priorities favoring “insiders” over “outsiders.”

Sand regularly answers commenter questions during live videos posted on his political Facebook page. During his June 1 “Transparency Tuesday” session, one person asked, “how about that governor’s fence?” Beginning around the 8:15 mark, Sand replied,

My transcript:

Yeah, how about that governor’s fence. If you missed this, Jean’s comment is about the $400,000 that’s getting spent on a fence at Terrace Hill.

Threats should be taken seriously, and the governor has seen threats, but so did Governor Branstad. So did Governor Culver. So did Governor Vilsack. They didn’t build a fence.

And in the meantime, you know, year after year after year, we’ve seen a lot of violence in Iowa’s correctional facilities, which could have been fixed in a variety of ways, depending on who you ask. But we didn’t see much action. Until finally now, that two correctional officers actually got murdered, now they decided to provide additional funding.

So it’s just, to me, it’s a question of priorities and insiders versus outsiders. $400,000 for protection because of some threats that were not uncommon, versus years of assaults that essentially got nothing until people died.

Priorities are out of whack for who that’s serving.

A little later in the video, Sand agreed with a different commenter who characterized the Terrace Hill fence as “ridiculous.”

The Iowa Department of Public Safety approved plans to construct permanent fencing around the governor’s residence sometime during the summer of 2020, public records show. I have not been able to determine whether Reynolds or anyone on her staff advocated for beefed-up security. Public safety officials denied the decision was linked to protests or demonstrations occurring near Terrace Hill and said the U.S. Department of Homeland Security had recommended perimeter fencing for years.

Sand’s comments during the June 1 video were not a one-off. A few days earlier, he drew the same comparison on his political Twitter feed.

In that Twitter thread, Sand linked to a recent Des Moines Register article by Daniel Lathrop, “Iowa prison staffing levels before Anamosa killings were near their lowest level in at least 30 years.”

Two decades of budget cuts left the people who guard Iowa’s prisons understaffed and overmatched by a growing prison population, a Des Moines Register investigation found. The issue is getting attention after the March slaying of two employees at the Anamosa prison, allegedly by a pair of prisoners.

The Register found that Iowa’s Department of Corrections in 2020 had:

-Close to the lowest number of correctional officers guarding its prisons in at least 30 years.

-Substantially fewer correctional officers working at eight of its nine prisons than it did five, 10 and 20 years earlier.

-A ratio of prisoners to correctional officers that had risen above the national average.

The Republican-controlled Iowa House and Senate recently approved a $20 million increase to the corrections budget for the next fiscal year. But Sand pointed out that happened only after two correctional officers were murdered, allegedly by an incarcerated person.

Reporters for the Cedar Rapids Gazette and KCRG-TV obtained public records in April showing that Iowa’s Occupational Safety and Health Administration cited the Iowa Department of Corrections last year for workplace violations at the Anamosa facility. Inspectors noted a lack of “adequate and reliable means of communication for employees to summon assistance during violent attacks or calls for emergency aid,” and not enough employees continually available to respond to such emergencies.

Sand is widely seen as likely to challenge Reynolds in 2022. He recently ruled out seeking any federal office next year but acknowledged he’s still considering running for governor or for a second term as state auditor.

Top image: Screenshot from Rob Sand’s “Transparency Tuesday” video on June 1.

State Auditor Rob Sand told Douglas Burns of the Carroll Times Herald on May 27 that he won’t run for a federal office in 2022.

“I don’t want to be in D.C.; I don’t want to go to D.C.,” Sand told the Times Herald. “Maybe I would be more interested if my kids were out of the house, but they are 4 and 7. But even if my kids were out of the house, that would be a lot less time to hunt and fish. […]”

Most Iowans thinking about running for U.S. Senate in 2022 are waiting for Senator Chuck Grassley to tip his hand, probably sometime this fall. But fifth-generation farmer and former Crawford County Supervisor Dave Muhlbauer launched his candidacy on May 24 by leaning into his rural roots.

State officials deployed “strike teams” involving the Iowa National Guard to more businesses last year than previously acknowledged.

Records the Iowa Department of Public Health (IDPH) released on April 26 show seventeen workplaces received COVID-19 testing assistance through a strike team. The agency had stated in January that only ten workplaces (operated by nine companies) had strike team visits. Several newly-disclosed events benefited businesses linked to Governor Kim Reynolds’ major campaign donors.

Iowa used the strike teams mostly during the spring of 2020, when COVID-19 testing supplies were scarce. However, a strike team was sent to Iowa Select Farms administrative headquarters in mid-July, more than five weeks after the state had stopped providing testing help to other business. That company’s owners are Reynolds’ largest campaign contributors.

The governor asserted at a January news conference that the state had facilitated coronavirus testing for more than 60 companies, saying no firm was denied assistance. The newly-released records show nineteen businesses received testing kits from the state, and another nineteen were directed to a nearby Test Iowa site where their employees could schedule appointments.

The public health department’s spokesperson Sarah Ekstrand has not explained why she provided incomplete information about the strike team program in January. Nor has she clarified what criteria state officials used to determine which companies received which kind of testing assistance.

The governor’s spokesperson Pat Garrett did not respond to any of Bleeding Heartland’s emails on this subject. Reynolds walked away when I tried to ask her about the strike team decisions at a media gaggle on April 28.

The University of Iowa must comply with a subpoena from State Auditor Rob Sand seeking details on a 50-year deal to lease the university’s utility system to a public-private partnership, the Iowa Supreme Court unanimously determined on April 30.

The Iowa Board of Regents approved the arrangement in December 2019 and closed on the deal in March 2020. But the university withheld many details, including the identity of “Iowa-based investors” who supposedly put up about 21.5 percent of the $1.165 billion lump-sum payment to operate the system for the next five decades.

The State Auditor’s office has been trying to enforce Sand’s subpoena since January 2020. The university and Board of Regents insisted they did not have to provide “confidential” information and disputed the validity of the subpoena.

None of the Supreme Court justices found the university’s stance convincing.

Governor Kim Reynolds revealed on April 29 that she is sending back $95 million in federal funds designated for testing students for COVID-19.

During a Fox News event featuring Republican governors, Reynolds said of President Joe Biden,

I think he thinks the COVID just started. I just returned 95 million dollars because they sent an additional 95 million dollars to the state of Iowa to get our kids back in the classroom by doing surveillance testing. And I said, “We’ve been in the classroom since August. Here’s your 95 million dollars back.”

Devastating results for Democrats up and down the ballot last November brought Iowa’s swing-state status into question.

Nevertheless, the largest political action committee focused on electing pro-choice Democratic women has named Iowa’s 2022 races for governor and U.S. Senate among its national targets.

Editor’s note from Laura Belin: The Governmental Accounting Standards Board and the Government Finance Officers Association now discourage use of the common acronym for this report, because when pronounced it sounds like a racial slur. Bleeding Heartland will avoid using the acronym in the future. Original post follows.

Challenges in obtaining auditable financial data from Iowa State University continue to delay the publication of the state’s Comprehensive Annual Financial Report (CAFR) covering the fiscal year that ended June 30, 2020. The Iowa Department of Administrative Services compiles the CAFR and typically publishes it by December 31. The latest edition has been held up because ISU was unable to submit its year-end financial data on the usual timetable.

The university switched to using the Workday computer system for accounting at the start of the 2020 fiscal year. While Iowa’s public universities have long sent year-end data to the Department of Administrative by October 1, ISU is still working on some “supplemental pieces” six months later.

As fundraising emails go, the message State Auditor Rob Sand’s campaign sent around 10:00 am on March 20 was nothing special. It began this way:

Even though it’s an off-year for us, it is still important to show our campaign is viably powered and the supported choice to move Iowa forward.

While re-election is still many months away, our campaign is already hard at work building the critical infrastructure needed to ensure re-election.

A “corrected” version arrived about an hour and 20 minutes later.

UPDATE: Weeks after publication, state officials said this payment had been “inaccurately coded to the federal CARES program,” which was “anticipated” to cover this expense but did not. They said the database would be corrected to reflect the coding error. More details are at the end of this post. Original text follows.

Iowa’s Office of Chief Information Officer spent $39,512 in federal COVID-19 relief funds on a project to migrate computers in Governor Kim Reynolds’ office from Google suite to Microsoft Office 365.

Public databases showing expenditures from Iowa’s Coronavirus Relief Fund do not indicate the governor’s office was the beneficiary of that November payment from OCIO to the vendor Insight Public Sector for unspecified “IT Outside Services.” Documents obtained through public records requests show the money covered the cost of the Google to Office 365 migration.

The governor’s office reimbursed OCIO for that expense in mid-December, days after the Reynolds administration was forced to backpedal on other COVID-19 funds spent on computer technology. Earlier the same month, Bleeding Heartland had sought records related to goods and services OCIO purchased on behalf of the governor’s office using money from the Coronavirus Relief Fund. 

The governor’s spokesperson Pat Garrett has not replied to inquiries about who authorized the initial spending on switching from Google to Office 365 or what funding source eventually covered the cost.

Governor Kim Reynolds and other officials with important roles in Iowa’s COVID-19 response received talking points from Domo, Inc. before filming a promotional video for the company on state property last July.

The Utah-based firm, part of a group that received a $26 million no-bid contract to create the Test Iowa program, provided each interview subject with questions and “key statements” in advance, documents Bleeding Heartland received through a public records request show. State Medical Director Dr. Caitlin Pedati, the governor’s chief operating officer Paul Trombino, and others voiced some of those messages on camera.

Despite official claims that “no state resources were used” for the video, email records indicate two of the governor’s staffers spent time on preparations such as securing permissions to use different areas of the state capitol building. In addition, Trombino asked Dr. Michael Pentella, director of the State Hygienic Laboratory, to participate in the Test Iowa video.

Democrats all over Iowa were saddened by the news that Polk County Treasurer Mary Maloney died unexpectedly on January 29. Many who offered their condolences on social media described Maloney as a true public servant. Her work since 1989 to modernize the treasurer’s office and keep it running smoothly was highly regarded. She was often the highest vote-getter in Iowa’s largest county when she was on the ballot, even outperforming other Polk County officials who ran for re-election unopposed.

Many personal friends and colleagues remarked on how kind and caring Maloney was. I’ve enclosed some remembrances below. Although I didn’t know Maloney well, her kindness came through in all of my interactions with her over the years.

The Bleeding Heartland community sends healing thoughts to all of Mary Maloney’s loved ones, especially her husband and four children.

State Auditor Rob Sand announced on January 26 that his office will examine the state’s use of COVID-19 “strike teams” involving the Iowa National Guard. A news release noted,

Reports show public record emails in which a metal-working manufacturer owned by major donors to Governor Reynolds received a strike team deployment upon a personal request made to her office, while the same county’s public health department saw its requests for locations with higher needs ignored.

Bleeding Heartland exclusively reported on those emails. In one exchange, an employee of the GMT Corporation in Waverly told Bremer County’s public health administrator, “I requested testing and was told that we would most likely be denied with only one case. Our owners contacted the governor directly and she authorized the testing for us.”

Following another devastating election up and down the ballot, Iowa Democrats have begun to speculate about the next political cycle. Governor Kim Reynolds will be up for re-election, and Iowa’s other U.S. Senate seat will be on the ballot.

State Auditor Rob Sand hasn’t ruled out running for governor, Senate, or re-election in 2022, he told viewers of an “ask me anything” Facebook session on December 10. “Any of those three would be possibilities.”

Glenn Hurst: Democrats cannot hope to build their bench if they undervalue down-ballot elected positions and concede those offices to Republicans. -promoted by Laura Belin

The Iowa Democratic Party needs to reconsider its strategy for winning elections in Iowa. Republicans have a stronghold on the governor’s office, the state legislature and the majority of Iowa’s Congressional delegation. They now dominate the Iowa Senate and have long controlled the majority in the House.

All 24 counties in Iowa’s second Congressional district have recounted their votes, but the race between Democrat Rita Hart and Republican Mariannette Miller-Meeks is far from over.

Trackers including Pat Rynard of Iowa Starting Line and Tom Barton of the Quad-City Times reached the same conclusion: once all counties submit their new numbers to the Iowa Secretary of State’s office, Miller-Meeks will have a six-vote lead out of more than 394,000 ballots cast. Rynard posted vote changes in each county since election day here. The two candidates’ vote share is identical to the one-hundredth of a percent (49.91 percent).

The Miller-Meeks campaign’s lawyer Alan Ostergren declared victory after Clinton County’s recount board finished its work on November 28. The Republican candidate said in a written statement, “While this race is extraordinarily close, I am proud to have won this contest and look forward to being certified as the winner by the state’s Executive Council on Monday.”

Three Republicans (Governor Kim Reynolds, Secretary of State Paul Pate, and Secretary of Agriculture Mike Naig) and two Democrats (State Treasurer Michael Fitzgerald and State Auditor Rob Sand) serve on the Executive Council. Assuming that body certifies the result, an election contest is extremely likely.

The state of Iowa’s contract with Workday to upgrade computer systems “is not an allowable expenditure” under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the U.S. Treasury’s Office of Inspector General informed Iowa Department of Management Director David Roederer on October 16.

The State Auditor’s office released a copy of the letter on October 21. State Auditor Rob Sand announced two days earlier that he had also informed Governor Kim Reynolds and Roederer that spending $21 million on Workday-related costs was “not an appropriate use” of the Coronavirus Relief Fund.

Governor Kim Reynolds erred in directing that $21 million in federal funding from the Coronavirus Aid, Relief and Economic Security (CARES) Act be used to cover the cost of a software system purchased before the COVID-19 pandemic, according to State Auditor Rob Sand.

Sand announced on October 19 that he and the U.S. Treasury Department’s Inspector General “have advised Iowa Governor Kim Reynolds that her decision to use millions of CARES Act dollars to help implement a new software system for state government was not an allowable use of the funds.” The Treasury Department and governor’s office did not respond to requests for confirmation and comment.

Sand also described as “questionable” the use of CARES Act funds to pay the governor’s permanent staff. Bleeding Heartland was first to report last month that Reynolds directed $448,449 in COVID-19 relief funds to pay a portion of salaries and benefits for 21 of her staffers from mid-March through June 2020. Sand warned that a federal audit may eventually determine that the payments did not meet requirements, so reallocating the funds to purposes clearly allowed under the CARES Act would be less risky for taxpayers.

State Auditor Rob Sand and Attorney General Tom Miller reminded Iowans on September 30 about state laws prohibiting the use of public property to promote candidates and attempts to intimidate or threaten voters.

Sand’s advisory was a response to an incident in the western Iowa town of Ute (Monona County). Miller’s comments did not refer to any specific event but appeared relevant to comments President Donald Trump made during the September 29 televised debate.

The Iowa Board of Corrections violated state law in 2019 by failing to send Governor Kim Reynolds a list of individuals qualified to serve as director of the Department of Corrections, a state audit confirmed on September 21.

Department officials assured auditors they would share the findings with the Board of Corrections and advise members of their duties under state law. Spokesperson Cord Overton told Bleeding Heartland on September 22 the department had sent board members a copy of the findings and the relevant code section.

He didn’t explain why the department failed to ensure that the board complied with the statute last year, when Marty Ryan raised concerns with the acting director.

Governor Kim Reynolds directed that nearly $450,000 in federal funding the state of Iowa received through the Coronavirus Aid, Relief and Economic Security (CARES) Act be used to cover salaries and benefits for staff working in her office.

According to documents Bleeding Heartland obtained from the Iowa Department of Management through public records requests, the funds will cover more than 60 percent of the compensation for 21 employees from March 14 through June 30, 2020.

Reynolds has not disclosed that she allocated funds for that purpose, and reports produced by the nonpartisan Legislative Services Agency have not mentioned any CARES Act funding received by the governor’s office. Nor do any such disbursements appear on a database showing thousands of state government expenditures under the CARES Act.

The governor’s communications director Pat Garrett did not respond to four requests for comment over a two-week period.

State Auditor Rob Sand had “great news” to share with members of the Iowa House and Senate Appropriations Committees in May. Federal officials had agreed not to demand repayment for alleged overbilling, provided that Iowa changed its billing practices for future audits. The savings to the state would amount to tens of thousands of dollars for each fiscal year.

Documents Bleeding Heartland obtained through a public records request confirm that key Reynolds administration officials were on board with the reform plan, and Iowa Senate appropriators took it up in June as the legislature was completing its work.

The records also show that State Representatives Gary Mohr and John Landon refused to move the fix through the Iowa House.

What they don’t explain is why.