Audit: Iowa should repay $2.6M in child care aid

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April 6th, 2012 by Ric Hanson

IOWA CITY, Iowa (AP) — Federal auditors are asking the state of Iowa to refund more than $2.6 million in funds for child care assistance for low-income families that was awarded years ago. A report posted online Thursday by the Office of Inspector General of the U.S. Department of Health and Human Services says the state should have refunded most of the money in 2006 when a contractor overseeing the program dissolved. The report says the Iowa Department of Human Services gave the money to other contractors, which is not allowed under federal rules. The recommendation to give back the money has angered state officials, who say they consulted with the federal agency’s regional office on their plan to use the leftover funds and thought they had put the matter to rest years ago.