A report from the state auditor’s office is recommending that state officials take steps to better manage the federal funds used to finance government programs which are run with a combination of both state and federal money.
The report recommends that the Iowa Department of Management do a better job of timing when it comes to accepting federal funds. The state faces paying interest to the federal government if too much federal money is taken too quickly. Conversely, if not enough federal money is taken to cover the costs of joint federal-state programs like Medicaid, the state can wind up using state funds to cover all the bills, losing the interest the state would earn if that money remained in the state treasury.
Another report from the auditor’s office suggests school districts need to do a better job of submitting applications to the state for certain grants, as the state cannot make the payments on time if the applications are late.