The state Pandemic Recovery Office did not monitor spending of $3.1 billion in federal pandemic funds in a way that would catch misuse in a timely way, according to a state audit released Thursday.
The recovery office required recipients provide receipts and monthly spending reports with supporting documentation, the audit said. But the office did not independently verify the spending by comparing the reports to the supporting documents until November 2020, after most of the money had been spent.
Additionally, the recovery office sent out money without making sure all recipients had goals for accomplishing their objectives or ways to measure results.
In response, state budget director Charles Perusse and recovery office executive director Stephanie McGarrah said the state legislature funded the office at half the requested amount, which resulted in understaffing and a delay in full verification of recipient spending. The office established a nine-step process that balanced release of money to recipients with monitoring expenditures, they wrote. The office is adding staff in response to the audit findings.
In December, the Auditor’s Office released a report critical of the state Department of Public Instruction’s monitoring of coronavirus relief fund spending. The audit faulted DPI oversight of the summer learning program and the school nutrition program.
The state legislature started the distributing the federal money in May 2020. Initially, federal law required it be spent by December 2020.
Thursday’s audit looked all 490 recipients of Coronavirus Relief Act money. Forty-three recipients did not report objectives, 302 of 447 reported objectives but no goals, and 57 of 145 reported objectives and goals, but had no way to measure progress, the audit said.
In their response, Perusse and McGarrah wrote that lack of staffing and funding, and the temporary nature of the recovery office contributed to the finding that performance measures “were not as robust as they could have been.”
The recovery office is set to dissolve in December.