County told Treasury will accept documentation on CARES Act 'questioned costs'; $417,882 identified

County staff told commissioners the U.S. Department of the Treasury has asked Oklahoma County to submit supportive documentation for costs questioned in a CARES Act desk review that totaled $417,882. The county submitted agreements and explanations and is awaiting Treasury's response on whether any of the questioned amounts will be sustained.

Chantelle Clayton, who delivered the update, said the desk review covered the county’s CARES Act activities and identified questioned costs totaling $417,882. Clayton said the largest portion relates to indirect administrative expense classification tied to service agreements with subrecipients, specifically Oklahoma Industries Authority and Oklahoma County Home Finance Authority. She said the county provided the service agreements and supporting detail to Treasury and the auditors and requested reconsideration of the classification.

"We do have a total question cost amount of $417,882," Clayton said. She added that Treasury, citing staffing shortages and backlog, is not accepting replacement expenses or engaging in a deeper audit at this time; instead, it will receive documentation and later issue any finding or recoupment determination.

Clayton said Treasury indicated two possible paths: "1, they would like us to voluntarily go ahead and pay the question cost amount or 2, wait for any report regarding recoupment." She recommended transparency and continued monitoring and offered to provide detailed backup to commissioners and staff.

Commissioners placed the item on the watch list; a motion to receive the report carried by voice vote. Clayton said she will forward the submitted documentation to commissioners' offices on request and that resolution of the questioned costs could be delayed by Treasury workload.