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State to return $21M in CARES funds used for internal IT upgrades


Gov. Kim Reynolds has directed the Iowa Department of Management to return $21 million to Iowa’s Coronavirus Relief Fund, following an October report by state Auditor Rob Sand that found the state misused the funds on an updated IT system. Of the original allocation, $4.45 million was spent on the project, the governor’s office said in a statement. Reynolds said the decision to spend CARES Act funding on Workday, a cloud-based human resources, finance and planning system, was approved by the state Department of the Treasury. Those funds will be returned to the state Coronavirus Relief Fund by Dec. 18, and the planned Workday upgrade will be funded through other supplemental funding. The state has $47.3 million in CARES funding left to be spent by the federal Dec. 30 deadline. 

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