MADISON COUNTY, Iowa — A divided decision by Madison County’s Board of Supervisors will move the county away from the State Auditor’s Office, opting instead for a private accounting firm to handle the next round of audits – despite objections from at least one Supervisor, the newly-elected County Auditor, and the newly-appointed County Treasurer.

On Tuesday, the board voted 2-to-1 to begin collecting bids from independent auditing firms, a decision driven by concerns over political bias and delays in state audit reports.

Board of Supervisors Chair Heather Stancil voiced her distrust in State Auditor Rob Sand’s office.

“I want someone to do our audit that is … does not have any kind of political agenda,” said Stancil during Tuesday’s regularly scheduled board meeting. “Auditor Sand has, in the past, gone outside his lane and he’s been told not … not to do that.”

Sand, a Democrat, announced in May he is running for Governor. All three Madison County Supervisors are Republican.

Stancil advocated for a multi-year agreement with a private firm. An agenda resolution that she introduced included information on a possible 3-year agreement.

The move was opposed by County Auditor Michele Brant and County Treasurer Kylee Barber, both of whom spoke openly during the public meeting.

“It is just very important, I feel, that we stick with the State Auditor this year,” said Barber. “There’s been a lot that has gone on. They are very well informed.”

Barber was referring to months of governmental turmoil in the county, including the arrest of elected Treasurer Amanda DeVos in January for alleged theft and fraud tied to her time in office, DeVos’ alleged refusal to resign for months, the resignation of elected county Auditor Teri Kaczinski in July after repeatedly trying to hire her campaign manager using county funds, a subsequent investigation into temporary appointed County Auditor Matthew Shwartz and a Federal lawsuit he and Stancil filed against the Sheriff, County Attorney and County Elections Deputy, and separate allegations of harassment by his office that led to a leave of absence for the County Elections Deputy just before a Special Election that he was a candidate in.

Those disruptions have reportedly contributed to delayed tax statements and errors in the county’s Fiscal Year 2025 budget report.

“Both the treasurer and I would like to speak to this,” added Brant as she addressed the board. “We feel strongly that continuity is key for cost savings of the county.”

Barber and Brant, both of whom have only officially been in their respective offices for a few weeks, wanted to stay with the State Auditor’s office for at least the FY 2025 audit. An agenda resolution brought forward by Brant to retain the State Auditor’s Office for FY25 was shot down by the board.

Stancil pointed to delays in obtaining the final audit reports for fiscal years 2023 and 2024, which she said have cost the county approximately $100,000, and expressed unease about a series of county courthouse visits from Auditor Sand’s office in early June amid his gubernatorial bid.

“We had someone from the State Auditor’s office come down and sit in a room with all of our elections equipment both during business hours and after business hours,” she said during the meeting.

Affidavit Reveals Purpose Behind State Auditor’s Office Visit

In response to these concerns, the State Auditor’s Office provided WHO 13’s Katie Kaplan with a signed affidavit from Jennifer McErlean, the county’s former IT Director, which offers additional context. According to McErlean, she had been served a subpoena by the State Auditor’s Office. For months, the State Auditor’s Office has been conducting an ongoing investigation, separate from annual county audits.

“On June 6th of 2025, I received a subpoena to provide specific information to the State Auditor’s office,” McErlean stated. “Ms. Heitshusen came to my office with a portable hard drive to collect video footage. The video footage was a part of the requested information on the subpoena.”

McErlean clarified that Communications Director Sonya Heitshusen, an investigator for the Auditor’s Office, was never alone in her office and had no access to voting equipment during the June 6 visit and a subsequent one on June 12.

“Ms. Heitshusen was never alone in my office nor did she have any contact with the OVO’s or OVI’s,” McErlean wrote, adding that the county elections equipment was often left unattended and around various county employees. “The security of the OVO’s and OVI’s or the lack thereof was not a priority for the current Auditor’s office from February 3rd until June 12th, 2025.”

OVO stands for OpenElect Voting Optical Scan, which conducts digital scans of ballots. An OVI is an OpenElect Voting Interface, which marks election ballots.

McErlean also mentioned that County Attorney Stephen Swanson was fully aware of the subpoena and had advised that Heitshusen’s presence was appropriate. The affidavit alleges that Stancil and Kaczinski were upset with Heitshusen’s presence in the office, but were told to back off by Swanson.

In recent months, McErlean lost her job after it was outsourced to a third-party vendor called Solutions, Inc., in a push also led by Stancil.

Stancil also made comments during another public BOS meeting that she was concerned that Heitshusen was a former WHO 13 employee. While Heitshusen previously worked for WHO 13 as an anchor and investigative reporter, she has not worked for the company in more than five years and was at one time engaged in a wrongful termination lawsuit against the company.

Legal Basis for Private Audits

According to the Iowa Code, counties are legally permitted to hire independent auditors.

Chapter 11.6(2) of the Code of Iowa states:

“Audits or required fiscal year examinations shall be made as determined by the governmental subdivision either by the auditor of state or by certified public accountants, certified in the state of Iowa, and they shall be paid from the proper public funds of the governmental subdivision.”

This means that counties like Madison may, with a vote of the governing body, choose to hire a certified public accountant rather than rely on the State Auditor’s Office.

Still, the State Auditor retains oversight. If the county selects a private firm, the state may review the work or perform a reaudit if requested by citizens, employees, or elected officials, Sand’s office told WHO 13 via email.

Financial Implications of Going Private

The Auditor’s Office typically bills counties at a rate of $100 per hour. By contrast, private CPA firms charge between 30% to 60% more, according to a statement from the State Auditor’s Office.

“Regardless of who the county hires, the county is responsible for paying for the annual audit,” the office said.

Audit Timeline and Investigation Delays

Rob Sand’s office had not yet begun work on Madison County’s FY25 audit, as the county had not signed an engagement letter. Audits are typically conducted in the Fall. Work is still in progress for the state audits of FY23 and FY24.

In a statement, Sand acknowledged the delays:

“The indictment of one county official and resignation of another have, predictably, slowed our work,” he wrote. “That said, the County is always free to try to find a private sector firm if they wish.”

Sand’s Office also defended the integrity and transparency of the office, noting that delays are not unique to Madison County and citing industry-wide challenges, including a national shortage of auditors. His office pointed out that even the firm that audits the Auditor of State’s own office did not release its FY22 audit until December 2024 and has not yet released its FY23 audit.

Additionally, the National State Auditors Association has given the Iowa Auditor of State’s Office its highest peer review rating for three consecutive reviews.

The results for FY23 are expected soon, his office said.

What Happens Next

Madison County will now begin collecting bids from independent audit firms. If a firm is selected, it will assume responsibility for the county’s next audit, FY2025 – but with the understanding that the State Auditor’s Office may still intervene or review the work if concerns are raised.

Stancil and Supervisor Jessica Hobbs both voted in favor of hiring an outside firm. Supervisor Diane Fitch voted nay.

During the meeting, Stancil concluded she wanted a fresh pair of eyes for the job. Hobbs stated she wanted the job done swiftly. Fitch said she wanted to support fellow county leaders Brant and Barber in their plea to retain the State Auditor’s Office for the immediate future.

All three declined to comment on the situation to WHO 13 after the meeting wrapped up.

Bids from private firms will be sealed and opened before the pubic, Brant told WHO 13.