DES MOINES, Iowa – Governor Kim Reynolds has ordered the return of $21 million in improperly allocated coronavirus relief funds.
The money had been directed to paying for the state’s contract with Workday, a cloud-based human resources, finance, and planning system being implemented to modernize the state’s IT infrastructure.
“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,” says Governor Reynolds. “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.”
$4.45 million of the $21 million was already spent on the IT project. The entire $21 million will be returned to Iowa’s Coronavirus Relief Fund by December 18.