Support your local businesses

Auditor of State Rob Sand has released a comprehensive report on the Iowa Ethics and Campaign Disclosure Board, detailing critical issues for the year ending June 30, 2023, including significant unpaid campaign penalties. The Iowa Ethics and Campaign Disclosure Board, responsible for ensuring the integrity of political campaigns, ethical standards for executive branch officials and lawful conduct of executive branch lobbyists, was found lacking in key areas of financial control and enforcement, according to Sand's audit. The audit first identified a lack of segregation of duties over financial transactions, reconciliations, and reports. Specifically, the report noted that responsibilities for maintaining detailed accounts receivable records were not separated from collections, and mail was not opened by personnel other than accounting staff. This lack of segregation could lead to errors or misappropriation of funds going undetected. The Board has a limited number of employees, making it challenging to implement adequate controls. Sand recommended the Board review its procedures to maximize internal control with available staff. One of the most significant findings in Sand's report pertains to the Board's handling of campaign penalties. Under Iowa Code Chapter 68B.32A, the Board is responsible for imposing penalties for non-compliance with campaign finance laws. However, the audit revealed that while the Board issued penalties for both minor and major violations, there was no follow-up to ensure these penalties were paid. The initial notice letters did not include payment instructions or deadlines, and there were no subsequent attempts to collect unpaid penalties, resulting in approximately $20,710 in unpaid fines as of June 30, 2023. During the 2023 legislative session, the Board initiated efforts to reform the penalty enforcement process. A bill was drafted to codify a payment deadline and outline consequences for non-payment, but it failed to pass. In response, the Board updated its notice letters to request payment within 30 days and included clear payment instructions. They also moved to a unified tracking system within their Web Reporting System (WRS), which now sends automated penalty letters and follow-up notices. Despite these improvements, the Board still lacks the authority to enforce payment mandates or take action against individuals or committees that fail to pay penalties. Another legislative attempt, HF 2168, is in progress for the 2024 session, aiming to address these enforcement gaps. A full copy of the report, including detailed recommendations, is available on the Auditor of State's website. Join the community of savvy subscribers (for free)! Get the latest updates, tips, and insider information by subscribing to the free newsletter today.

Support your local businesses

Campaign Penalties, Financial Control Issues Found at Iowa Ethics Board