State Auditor Rob Sand is calling for greater transparency and accountability in Iowa’s $100 million education savings account (ESA) program, citing significant financial oversight concerns. Sand released the fiscal year 2024 Statements of Auditing Standards (SAS) 122 letter, which reviews the state’s financial integrity. The report identifies six material weaknesses, including three directly related to the ESA program. A material weakness is considered a financial reporting deficiency serious enough to impact the accuracy of the state’s financial records. Sand says, “This is a big deal. We can’t audit a program that the state spent $100 million on because the state won’t give us the information needed to let Iowans know how their tax dollars are being spent.” The Iowa Departments of Education and Revenue have refused multiple requests from the Auditor’s Office for proof of income eligibility, proper fund disbursement, and data security measures for participants. Sand says the Reynolds administration’s resistance is hypocritical, saying, “The Governor claimed every program should be looked at when testifying before a Congressional Oversight Committee, but then turns around and thumbs her nose at transparency and accountability of a program she championed.” Iowa’s ESA program is projected to expand to more than $300 million next year. Sand’s full press conference from Tuesday is included below.
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