Three recent audits opened by the U.S. Office of the Inspector General cited errors in Iowa’s management of federal funds provided for 2008 flood relief. Most significantly, the state failed to verify that disaster assistance funds for businesses were not being duplicated by other federal grants. The error led to at least $85,000 in overpayments, which the state’s economic department has required be returned.
The state also failed to properly document estimates for rent assistance that was provided to some businesses, and did not adequately advertise a competitive bid process for a contractor whose job was to handle buyouts of property in flooded areas.
All three audits have been closed or resolved, according to state and city officials.
Read more about the audits and city and state responses here.