• About Us
  • Advertise
  • Contact Us
  • Privacy Policy
Friday, May 9, 2025
The Iowa Torch
  • Home
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion
No Result
View All Result
  • Home
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion
The Iowa Torch
The Iowa Torch
No Result
View All Result
Home State Government

State of Iowa to Return CARES ACT Funding Used for IT Expenses

Gov. Kim Reynolds directed the Iowa Department of Management to return $21 million to Iowa’s Coronavirus Relief Fund that the Treasury Department's OIG said wasn't allowed.

Iowa TorchbyIowa Torch
December 14, 2020
in State Government
Reading Time: 5 mins read
Reynolds Issues Mask Mandate, Additional Restrictions

Iowa Governor Kim Reynolds gives a prime-time televised address announcing new efforts to combat COVID-19 in the state, on Monday, Nov. 16, 2020, at Iowa PBS, in Johnston, Iowa. Photo Credit: Cecelia Hanley/The Des Moines Register

DES MOINES, Iowa – Gov. Kim Reynolds has directed the Iowa Department of Management to return $21 million to Iowa’s Coronavirus Relief Fund. The funds were initially allocated for payments related to the state’s contract with Workday, a cloud-based human resources, finance, and planning system being implemented to modernize the state’s IT infrastructure. Of the allocation, $4.45 million was spent on the project.   

RELATED POSTS

Reynolds signs bill enacting flat tax in 2025

Reynolds joins bipartisan opposition to Biden Administration’s Space Force proposal

Iowa lawmakers enact flat tax for 2025

“The COVID-19 pandemic only further highlighted the critical need for integrated IT systems that will improve operational efficiency and effectiveness for the State of Iowa,” Reynolds said. “Following multiple conversations with the Treasury Department last spring, we believed we had assurances that the upgrade to Workday qualified as an allowable expense. We would not have moved forward without those assurances.”   

The Department of the Treasury’s OIG affirmed its determination that payments for Workday were not allowable expenditures under the CARES Act. While the state still maintains its position that these are allowable expenditures, it respects the decision and will return the funds by December 18. 

Replacing the state’s outdated IT systems remains a critical need, and has received overwhelming bipartisan support from the Legislature and elected officials. As such, the Workday implementation will continue as planned. The estimated costs and timelines of the project have not changed. Supplemental funding is needed to support the completion. 

ADVERTISEMENT

Iowa received a total allocation of $1.25 billion from the Coronavirus Relief Fund established by the federal Coronavirus Aid, Relief and Economic Security (CARES) Act. The $4.45 million spent on Workday represents just 0.36 percent of the total funds, while more than 96 percent has been allocated to programs that have provided direct relief for Iowans. 

  • More than$76 million to support Iowa families   
  • More than $126 million to support small businesses and non-profits  
  • More than $110 million to support Iowa farmers and producers  
  • $125 million to support Iowa communities  
  • Nearly $112 million to support Iowa health care providers 
  • $490 million for the Unemployment Trust Fund, creating tax relief for 40,766 employers    
  • $35 million for Broadband Expansion Grants  
  • $127 million for COVID-19 operations  

The State will allocate the remaining $47.3 million by the December 30 deadline, but an extension from the federal government would allow time to use the funds to create additional programs and support other needs among Iowans.  Reynolds strongly encourages Congress to work together and make additional support possible for American families, workers, and businesses before the end of the year. 

Tags: CARES ActCOVID-19Iowa Department of ManagementKim ReynoldsU.S. Treasury Department
ShareTweetShare
ADVERTISEMENT
Previous Post

Iowa’s Electors Cast Electoral College Vote

Next Post

HSEMD Director Joyce Flinn to Retire

Iowa Torch

Iowa Torch

The Iowa Torch​ is a for-profit, news organization that focuses on political news as it relates to Iowans.

Related Posts

State Government

Reynolds signs bill enacting flat tax in 2025

May 2, 2024
Reynolds joins bipartisan opposition to Biden Administration’s Space Force proposal
State Government

Reynolds joins bipartisan opposition to Biden Administration’s Space Force proposal

May 1, 2024
State Government

Iowa lawmakers enact flat tax for 2025

April 25, 2024
Opinion

Hendrickson: Iowa taxpayers win big in 2024

April 25, 2024
Hinson: Use biofuels to bring down the cost of gas today
Federal Government

EPA issues emergency fuel waiver for E15 sales

April 19, 2024
Reynolds Announces State Troopers Completed Deployment at Southern Border
State Government

Reynolds signs illegal immigration bill

April 12, 2024
Next Post
HSEMD Director Joyce Flinn to Retire

HSEMD Director Joyce Flinn to Retire

Des Moines Extends COVID-19 Measures In Response to Holiday Season

Des Moines Extends COVID-19 Measures In Response to Holiday Season

Recommended Articles

Chuck Grassley: Big Tech Must Stop Censoring Americans

Chuck Grassley: Big Tech Must Stop Censoring Americans

April 12, 2021
crime scene do not cross signage

FBI report shows violent crime in Iowa is down

October 20, 2023
Reynolds Appoints Badding to Iowa Court of Appeals

Reynolds Appoints Badding to Iowa Court of Appeals

July 23, 2021

Popular Stories

  • Three LGTBQ Books with Sexually Explicit Material Pulled from Waukee School

    Three LGTBQ Books with Sexually Explicit Material Pulled from Waukee School

    0 shares
    Share 0 Tweet 0
  • Rozenboom: Reflecting on the First Week of the 2021 Legislative Session

    0 shares
    Share 0 Tweet 0
  • Iowa Dept. of Health & Human Services fill two leadership roles

    0 shares
    Share 0 Tweet 0
  • Reynolds Appoints Joshua Schier as District Court Judge

    0 shares
    Share 0 Tweet 0
  • Fauci ends taxpayer-funded experiments on dogs

    0 shares
    Share 0 Tweet 0
The Iowa Torch

The Iowa Torch​ is a for-profit, news organization that focuses on political news as it relates to Iowans

Categories

  • Current Events
  • Education
  • Federal Government
  • Iowa History
  • Local Government
  • News
  • Opinion
  • Politics
  • State Government

Newsletter

© 2022 The Iowa Torch, a publication of 4:15 Communications, LLC.

No Result
View All Result
  • Home
  • About Us
  • Advertise
  • Contact Us
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion

© 2022 The Iowa Torch, a publication of 4:15 Communications, LLC.