RPC hears how audit delays and a 'stop-pay' are blocking access to millions in grants

Miss Ogden and finance staff reported that a pending audit and a stop-pay placed on the organization have blocked drawdowns on a set of grants. Ogden said roughly $570,000 cannot be accessed immediately and that another approximately $2,100,000 will remain unavailable until the stop-pay is lifted. She said the agency is working with funders and has secured stop-pay overrides for some grants but that cash-flow risk remains.

Commissioners and staff discussed whether to proceed with completing and submitting the audit even if it contains findings. Summers said staff is doing retroactive corrective work and that the external auditor (CLA) is backlogged; moving ahead with an audit that includes findings could reopen funding sooner, though it may require subsequent corrective action. Staff described strategic pauses on some grant activities, recharging staff time to other grants and contractual protections that delay pass-through payments until funding is received.

A commissioner asked whether the withheld funds would be paid retroactively once stop-pay is lifted; staff replied yes for work already performed, but noted that missed opportunities (such as grants they could not apply for while the stop-pay was in place) are not recoverable. The commission also heard that some grant application windows were missed because of the stop-pay, including a workforce-focused grant in a $250,000–$750,000 range.

Why it matters: The stop-pay affects program delivery and planning across multiple grants and service areas. Staff emphasized cash-flow management and the need to prioritize work on grants with imminent end dates to avoid losing reimbursements tied to performance periods.

The discussion produced no formal motion to change auditing strategy, but staff said they will continue working with CLA and funders to resolve the stop-pay and will report back on timelines and any required corrective actions.