The state is being asked to repay $1.5 million in federal funds intended to help the poor and disabled.
The U.S. Department of Health and Human Service's inspector general claims the Iowa Department of Human Services failed to adequately oversee state and federal Medicaid money that pays for case-management services for children, young mothers, the mentally retarded and others in need.
The inspector general's office reviewed 200 claims for payment filed by the Iowa Human Services agency in 2003 and 2004. Of those, 73, or more than 36 percent, were deemed questionable.
The most common problem was that caseworkers didn't document any services provided to clients.
In some cases, the lack of documentation may be because of the computer system used by caseworkers, federal officials said.
Caseworkers are supposed to type in the services that have been provided. The field where the information is entered is limited in size so explanations may be incomplete, officials said.