A bill being advanced by Iowa Republican lawmakers could limit ability of the state auditor to perform oversight on programs that total more than $12 billion, which could result in loss of services provided by those dollars.
That’s according to a new fiscal analysis from the nonpartisan Legislative Services Agency of Senate File 478.
The bill, which passed the Senate in March on a party-line vote with Democrats opposed, would place limits on what personal information the state taxpayers’ watchdog could demand during an audit.
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Iowa State Auditor Rob Sand is the lone Democrat to hold statewide office.
Republican lawmakers have denied claims the bill is a personal attack meant specifically to target Sand.
The bill would prohibit the state auditor’s office from accessing criminal, medical, tax and educational records or “other similar information that an individual would reasonably expect to be kept private,” unless the information is made anonymous before its disclosure.
Any dispute with another state government agency — including the governor’s office or other statewide offices — would be resolved by an arbitration panel and could not be taken to court.
A bipartisan coalition of state auditors and national organizations that represent state auditors and accounting professionals have said the proposal would hinder the state auditor’s ability to conduct investigations in an independent, nonpartisan fashion and hamper its ability to root out and prevent waste, fraud and abuse of taxpayer dollars.
Republicans say the bill protects Iowans’ personal information and puts into state law general accounting standards.
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However, the Legislative Services Agency’s fiscal analysis notes Iowa Code and federal law already maintains the strict confidentiality of information and records obtained during the course of an audit, including medical and student education records.
Auditors also are subject to the same restrictions and penalties as the custodian of records for improper disclosure, it stated.
The agency warns the bill may limit the scope of an audit performed by the auditor’s office, which could impact the state’s ability to comply with federal award requirements.
Denial of information requested by the auditor’s office for an audit would lead to a modified opinion stating the office was unable to obtain all documents needed to sufficiently audit to federal standards. That would result in more frequent audits, increasing costs to the state, according to the agency.
It also could potentially lead to federal agencies withholding, suspending or disallowing cash payments to the state through programs such as Medicaid, Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), the Children’s Health Insurance Program (CHIP) and others.
The fiscal note is based off the bill that passed out of the Senate, but was amended last week by the House State Government Committee.
The amendment removed language stating the office would only be able to access records with personal information if the agency being audited agrees with the auditor that the information is necessary in order to conduct an audit.
Rep. Michael Bergan, R-Dorchester, who serves on the House subcommittee that advanced the bill and has an accounting background, said it is his goal to avoid any risk to federal funding. Bergan said he feels the amended language achieves that goal.
“For the most part, we’ve addressed that, but we’re still in the process of discussions with both the auditor of state and CPAs,” Bergan said, noting the restrictions would also apply to certified public accounting firms that perform audits for counties, cities, school districts and other local governments across the state.
“At this point, I’m still open to changes in the amendment that came out of committee to ensure we’re address” the financial concerns outlined in the LSA fiscal note, Bergan said.
Sonya Heitshusen, public information officer for the Iowa State Auditor's Office, said the amendment does no sufficiently address the fiscal concerns.
“The fiscal note speaks for itself and adds to the professional and nonpartisan chorus sounding the alarm about Senate File 478,” Heitshusen said.
Rep. Adam Zabner, a Democrat from Iowa City who serves on the House State Government Committee, said he still has concerns the bill will erode transparency and accountability in state government and undercut the independence of the auditor’s office.
"Twelve billion dollars, that’s a pretty big number,“ Zabner said. ”And when LSA is saying there’s going to be a qualified opinion or disclaimer on that $12 billion in funds, that’s a really big impact on everyday Iowans in terms of the programs they rely on, and the potential that we may have issues with those programs and there may be some sort of federal audit.
“I think that should scare folks.”
Zabner said he’s unconvinced the House amendment will fix those concerns.
"We should all want our tax dollars to be spent efficiently and correctly,” he said.
www.thegazette.com
That’s according to a new fiscal analysis from the nonpartisan Legislative Services Agency of Senate File 478.
The bill, which passed the Senate in March on a party-line vote with Democrats opposed, would place limits on what personal information the state taxpayers’ watchdog could demand during an audit.
Advertisement
Iowa State Auditor Rob Sand is the lone Democrat to hold statewide office.
Republican lawmakers have denied claims the bill is a personal attack meant specifically to target Sand.
The bill would prohibit the state auditor’s office from accessing criminal, medical, tax and educational records or “other similar information that an individual would reasonably expect to be kept private,” unless the information is made anonymous before its disclosure.
Any dispute with another state government agency — including the governor’s office or other statewide offices — would be resolved by an arbitration panel and could not be taken to court.
A bipartisan coalition of state auditors and national organizations that represent state auditors and accounting professionals have said the proposal would hinder the state auditor’s ability to conduct investigations in an independent, nonpartisan fashion and hamper its ability to root out and prevent waste, fraud and abuse of taxpayer dollars.
Republicans say the bill protects Iowans’ personal information and puts into state law general accounting standards.
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However, the Legislative Services Agency’s fiscal analysis notes Iowa Code and federal law already maintains the strict confidentiality of information and records obtained during the course of an audit, including medical and student education records.
Auditors also are subject to the same restrictions and penalties as the custodian of records for improper disclosure, it stated.
The agency warns the bill may limit the scope of an audit performed by the auditor’s office, which could impact the state’s ability to comply with federal award requirements.
Denial of information requested by the auditor’s office for an audit would lead to a modified opinion stating the office was unable to obtain all documents needed to sufficiently audit to federal standards. That would result in more frequent audits, increasing costs to the state, according to the agency.
It also could potentially lead to federal agencies withholding, suspending or disallowing cash payments to the state through programs such as Medicaid, Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), the Children’s Health Insurance Program (CHIP) and others.
House amendment
The fiscal note is based off the bill that passed out of the Senate, but was amended last week by the House State Government Committee.
The amendment removed language stating the office would only be able to access records with personal information if the agency being audited agrees with the auditor that the information is necessary in order to conduct an audit.
Rep. Michael Bergan, R-Dorchester, who serves on the House subcommittee that advanced the bill and has an accounting background, said it is his goal to avoid any risk to federal funding. Bergan said he feels the amended language achieves that goal.
“For the most part, we’ve addressed that, but we’re still in the process of discussions with both the auditor of state and CPAs,” Bergan said, noting the restrictions would also apply to certified public accounting firms that perform audits for counties, cities, school districts and other local governments across the state.
“At this point, I’m still open to changes in the amendment that came out of committee to ensure we’re address” the financial concerns outlined in the LSA fiscal note, Bergan said.
‘Big number’
Sonya Heitshusen, public information officer for the Iowa State Auditor's Office, said the amendment does no sufficiently address the fiscal concerns.
“The fiscal note speaks for itself and adds to the professional and nonpartisan chorus sounding the alarm about Senate File 478,” Heitshusen said.
Rep. Adam Zabner, a Democrat from Iowa City who serves on the House State Government Committee, said he still has concerns the bill will erode transparency and accountability in state government and undercut the independence of the auditor’s office.
"Twelve billion dollars, that’s a pretty big number,“ Zabner said. ”And when LSA is saying there’s going to be a qualified opinion or disclaimer on that $12 billion in funds, that’s a really big impact on everyday Iowans in terms of the programs they rely on, and the potential that we may have issues with those programs and there may be some sort of federal audit.
“I think that should scare folks.”
Zabner said he’s unconvinced the House amendment will fix those concerns.
"We should all want our tax dollars to be spent efficiently and correctly,” he said.
Iowa’s state auditor bill jeopardizes $12B in federal funds
Estimate comes from nonpartisan Legislative Services Agency
www.thegazette.com
