State to return portion of CARES Act funds

Governor Kim Reynolds has directed the Iowa Department of Management to return $21 million to Iowa’s Coronavirus Relief Fund.

Some of the funds were initially used for payments related to the state’s contract with Workday, to modernize the state’s IT infrastructure.

State Auditor Rob Sand said earlier this year that using the federal money to pay for the new system is not allowed under the law.

He said that if the money wasn't used for a different purpose, Iowa taxpayers could be on the hook to repay the federal government $21 million later on.

Full release from the governor's office here.


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