Oklahoma County staff submits documentation to Treasury OIG as CARES audit remains open

Oklahoma County staff told a county EET meeting on May 12, 2025, that they have shared a structured SharePoint link and a written memo with the U.S. Treasury Office of Inspector General (Treasury OIG) after an audit questioned parts of the county’s use of CARES Act funds.

The county’s finance staff member, Shantel, said the county’s internal review shows roughly $417,000 in costs under scrutiny and that about $300,000 of that total relates to how service contracts were classified. She said she asked Treasury OIG for clarification on what documents to submit and in what format, then gave them a single link to the county’s CARES documentation and a memo asking reconsideration for items she believes are allowable.

Why it matters: the items under review are federal CARES Act reimbursements; if Treasury requires recoupment the county could face a liability and further budget implications. The county’s auditors and its grant administrator had previously interpreted some contract line items differently than Treasury’s auditors, creating the disputed amounts.

What staff said and submitted

Shantel said Treasury OIG contacted the county and requested supporting documents to close the federal audit. She summarized the county response: "I was able to, clarify a couple of things... I talked to someone for clarification, and I asked them what format they wanted the files submitted in." She said county staff provided a SharePoint link to the auditing firm’s desk-review files and a memo explaining why certain items — especially contract service fees charged by subrecipients — should be considered allowable rather than administrative costs.

Shantel described three kinds of issues the auditors flagged: reconciliation errors where reported totals did not match supporting checks and invoices; an item Treasury initially flagged as a duplicate $50,000 payment for which the county says it has documentation showing the correction; and roughly $300,000 in disputed service-contract charges that the auditors treated as ineligible administrative fees but that county staff say were contractual service fees charged by subrecipients.

Treasury OIG response and next steps

Shantel said her Treasury contact confirmed by phone and email that, at present, Treasury OIG is not accepting substitution or replacement expenditures because the OIG is short staffed and the audit window has passed. She said Treasury informed the county that the change in practice occurred after December 2024 and that, for now, Treasury is likely to accept the original auditors’ recommendations when it completes its review.

Shantel said she requested reconsideration and submitted the supporting documentation and memo; she has not yet received a final, written determination. She told the meeting she will look for any written Treasury guidance or CFR change that would explain the shift and will return with any new information. She also said the county retains the documentation that could support corrections if Treasury reopens the opportunity to accept replacements.

Board response and formal action

Board members asked whether an appeal process exists; Shantel answered that an appeal is available in the grant process but said she was still verifying published Treasury guidance. The board moved and voted to receive the update as an informational item.

What remains unresolved

Shantel said Treasury OIG’s final review "would not be anytime soon" and that the OIG’s staff indicated informally they would likely follow the auditors’ recommendations. She noted the county may need more time to confirm whether Treasury’s change in practice was ever published in guidance and whether the county could pursue an appeal or other remedy if the OIG requires repayment.

Ending

The board accepted the update and asked staff to continue gathering documentation and to report back, including any written Treasury guidance or formal determinations.