Audit accuses state of misspending federal election funds

An independent audit commissioned by the U.S. Election Assistance Commission (EAC) has found questionable spending, poor bookkeeping and poor oversight of funds the state received from the federal government as part of the Help America Vote Act (HAVA).

Gov. Chet Culver

The audit, released the same day as an audit of the state’s film tax credit program, focuses mostly on four years in which Gov. Chet Culver oversaw Iowa’s elections as Secretary of State.

Among the reports findings include:

· There were errors in computing interest on state matching funds.

· Interest on HAVA funds on deposit at the counties was not deposited for the credit of HAVA.

· Equipment inventories at the sampled counties did not include required information or include all HAVA equipment acquired.

· Capital improvements paid from HAVA funds were not approved by the EAC.

· There was a lack of competitive bidding for procurements and services.

· HAVA funds were used for promotional activities, unrelated to educating voters.

· HAVA funds were used for radio commercials that did not provide voter education.

· Supporting documentation was not provided to support personnel charges to HAVA.

· An equipment lease payment was made with HAVA funds for which no tangible benefit was received.

· There were errors in the financial reports filed with the EAC.

In particular, the audit questions the spending of $118,000 in 2005 as part of a celebration of the 40th anniversary of the Voting Rights Act, the 85th anniversary of the 19th Amendment to the Constitution and the legacy of voting rights in Iowa. The events included numerous events from August to November. The audit concluded the allocations were not allowed under the law.

Another $885,573 was paid for salaries and benefits without proper documentation, the audit said.

An official with the EAC told The Des Moines Register that the Secretary of State’s office would have the opportunity to refute the audit’s findings, so it is too early to tell if the state will be forced to repay the money.

One of Culver’s GOP gubernatorial challengers, Rep. Chris Rants of Sioux City, pounced on news of the audit, saying that on the heals of the film tax credit investigation this is further evidence that Culver hasn’t managed Iowa’s money well beyond his term as governor.

“The US Election Commission’s audit shows highly questionable activities from no-bid contracting, to salaries paid without documentation,” Rants said.

The Help America Vote Act was signed into law by President George W. Bush in 2002 in reaction to the controversy surrounding the 2000 U.S. presidential election. It’s goals were to replace punch card voting systems; create the Election Assistance Commission to assist in the administration of Federal elections; and establish minimum election administration standards.