State Auditor Rob Sand says the Board of Parole reports it has resolved an issue raised by a whistleblower who contacted Sand’s office, accusing the board of failing to have the right officials sit on the state panels for parole hearings. However, Sand says the board is citing a new law and refusing to provide documents showing the policy’s been fixed.
“Government corruption and secrecy are growing in the state of Iowa,” Sand said this morning during a news conference in his State Capitol office.
That 2023 law set up an appeal process if a state agency refused to provide the state auditor’s office with documents, but Sand said it would be “pointless” to seek an appeal. “That panel would be one person from our office, one person from the Board of Parole which works at the pleasure of the governor and the third person appointed by the governor,” Sand said. “I like efficiency in state government. I’m not here to clown around and waste people’s time.”
The Board of Parole says the information was not provided because Sand refused to provide a letter outlining the rights and responsibilities of those involved in the audit. A spokesman for the governor says “engagement letters” are an industry standard “and it’s concerning he refuses to comply with it.”
A spokesman for Sand says the auditor’s office has a signed engagement letter from the Departments of Management and Administrative Services that covers “all of state government” and “if the Board of Parole believes it’s not part of state government, that’s news to us.”
A bill introduced in the Iowa Senate this week would let state agencies hire private CPA firms to conduct audits and Sand said that would destroy anti-corruption checks and balances in state government. “So let me make it clear regarding today’s report on the Board of Parole where we can’t say whether the state of Iowa is even following its own laws,” Sand said. “With this bill, they want to find an auditor who won’t even dare ask the question in the first place.”
Sand told reporters private CPAs charge far more than the hourly rate for auditing done by his office and having private CPA firms audit state government agencies would cost taxpayers about $5 million more per year.
“It would replace the state auditor chosen by the people of the state of Iowa with one insiders will handpick, with no bidding requirement and now means of independent oversight of their audits,” Sand said. “These insiders want an auditor who is a lapdog, not a watchdog.”
The Republican senator who’s sponsoring the bill said Iowa cities, counties and school districts are allowed to use private CPAs for annual audits and the policy should be extended to state government agencies. Sand told reporters the bill prohibits his office from following up if any of those private CPAs find problems.