County officials brace for potential clawback of federal funds

During a recent government meeting, officials discussed the critical issue of potential clawbacks of American Rescue Plan Act (ARPA) funds, particularly in light of new supervisors unfamiliar with the process. Controller Hicklin provided an overview of the auditing mechanisms in place to ensure compliance with federal funding requirements.

Hicklin explained that the county is subject to a single audit conducted by external auditors, which includes a thorough review of all spending, including ARPA dollars. The U.S. Department of Treasury, which oversees the ARPA funding, also conducts desk audits to verify that funds are used appropriately and in accordance with congressional intent. These audits scrutinize documentation such as invoices, checks, and procurement procedures.

In cases where there are suspicions of fraud or misuse of funds, more rigorous inspections by the Inspector General may occur. Hicklin emphasized the importance of maintaining proper documentation to avoid disallowed costs, which could lead to the federal government demanding repayment of funds. He recounted a previous experience with the district attorney's office, where the county faced a potential clawback of $110,000 but ultimately resolved the issue without financial penalties by implementing a corrective action plan.

The discussion underscored the necessity for strict adherence to financial protocols to safeguard against the risk of clawbacks, which could significantly impact the county's budget and operations.