DES MOINES, Iowa — Iowa Governor Kim Reynolds and State Auditor Rob Sand both took shots at each other Tuesday at the Iowa State Capitol building.

Gov. Reynolds held a press conference to announce legislation that looks to add more residency spots to address shortages in rural healthcare. But before that, Auditor Sand held his own availability where he released a fiscal year 2024 Statements of Auditing Standards letter, something he is required to do on the internal controls of Iowa’s finances and a review of the state’s financial integrity.

Some of the weaknesses outlined in the letter were about the state’s educational savings account (ESA) program, giving families state dollars if they are a certain percentage above the federal poverty line and plan on attending a private school. Sand accused the Department of Education and Revenue of not providing the necessary information his office needed to properly audit the dollars going out, and that students who got the money met the income eligibility requirements.

“This is a big deal,” said Auditor Sand (D). “We can’t audit a program that the state spent $100 million on because the state won’t give us the information needed to let Iowans know how their tax dollars are being spent.”

Reynolds addressed the accusations by Sand after her press conference when taking questions off topic from members of the media.

“First of all, let me just say that Auditor Sand has been gunning for higher office since the day he was elected. The auditor should be nonpartisan, nonbiased, but he has publicly been against education freedom and ESA’s since the day that we signed it into law,” said Reynolds (R). “…he has the opportunity to review it with simply signing an engagement letter. He doesn’t really want the answer. He wants the political fodder back and forth to really boast his political career, because that’s what he’s there for.”

Sand argued that the engagement letter, which would ask for the specifics on what he wanted to look at, is the opposite to the point of his office wanting to conduct a nonpartisan audit. Sand pointed at a state supreme court ruling in 2023 showing not in every instance are engagement letters necessary.

The Department of Management released a letter sent to the auditor’s office back in October, where Director Kraig Paulsen called the inquiry politically motivated. The full letter is provided below.

Governor Reynolds also took questions about potentially running for her third term as Iowa’s Governor, saying she may have an announcement and to stay tuned. There is a growing assumption that Sand is seeking the Democratic nomination in the 2026 gubernatorial race, which is why Gov. Reynolds pointed at him seeking some type of higher office in her remarks.

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