State Audit: State told foundation to charge what it wanted in emergency rent program

Polds4OSU

Marshall
OKLAHOMA CITY (KFOR) – KFOR has uncovered new information as the station continues to dive into the state audit that exposed millions in misspent pandemic funds.

New evidence shows the state agency that was supposed to hold non-profits accountable, suggested they could charge as much as they want in administrative fees.

Taxpayers could be on the hook for paying it back to the federal government

According to the Communities Foundation of Oklahoma, they distributed $334 million dollars to more than 80,000 household under the Emergency Rental Assistance Program.

The Foundation was hired by the state of Oklahoma to distribute the money.

In an email, OMES said the Foundation was allowed to charge for administrative fees.

But the audit claims the Foundation essentially double dipped by charging both a management fee and an administrative fee, with $1.6 + million dollars in questioned costs.

Without state oversight, the audit shows the fees were calculated based on estimates, not the actual amount of benefits paid.

” If you’re not proficient on what the guidelines are it’s not a good idea to put you in charge of the grant,” said State Auditor and Inspector Cindy Byrd in a previous interview with KFOR

State Auditor Cindy Byrd said if the federal government steps in, the state of Oklahoma will be held accountable.

“Ultimately the state of Oklahoma will always be the ones at fault because they’re tasked with monitoring these funds with making sure the contracts are correct,” said Byrd.

The audit recommends that the state develop internal controls to make sure it administers federal grants properly, including making sure expenses are properly tracked and reviewed.
 
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