The Iowa House Government Oversight Committee approved a majority report this morning (Tuesday) detailing an investigation into the Iowa Judicial Branch’s misallocation of approximately $25 million in court debt funds. The report, authored by Rep. Charley Thomson (R-Charles City), examines the judicial system’s records from Fiscal Year (FY) 2021 through FY24 and describes a pattern of financial mismanagement and delayed disclosure. Lawmakers were notified in 2024, according to the report, though the judicial branch was aware of issues as early as 2021. State officials say funds were overpaid to the state’s general fund while other accounts were underfunded, including the Road Use Tax Fund by $10.4 million, the Victim Compensation Fund by $3.7 million, and the Juvenile Detention Home Fund by $3.5 million. The committee argues that the judicial branch attempted to address the issue internally and delayed notifying the legislature of the errors for nearly three years. The report is also critical of State Auditor Rob Sand, claiming his office was notified in October 2022 of the misallocations but did not pursue further investigation. Notably, the report does not allege specific wrongdoing, but also notes “no one can state with credible certainty and personal knowledge the precise date the errors began, whether they have ended, or whether any funds were improperly diverted to private hands.” The committee approved the report on a 6-4 vote. The complete 14-page report is included below.
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