Ottawa County committee orders internal audit of $57 million in ARPA spending, to report March 5

The Ottawa County Finance & Administration Committee on Feb. 6 directed county fiscal services, in coordination with the committee chair, to conduct a comprehensive internal audit of American Rescue Plan (ARPA) funds and present the results at the committee meeting on March 5, 2024.

The chair said the audit will "scrutinize the use and distribution and the return of the ARPA funds allocated to our county" and will examine "the $57,000,000 awarded to the county and its distribution," including transfers into a board-initiatives account. The chair also noted the transcript references a transfer to board initiatives of about $2.7 million (the transcript also at one point references $2.75 million); the audit will clarify the precise amounts and eligibility for those uses.

Committee members said the audit is intended to increase transparency and accountability. "I'd just like to say thanks for putting this on the agenda," one committee member said, calling the audit a useful oversight tool. Another member said the report should produce "good information" and could identify additional actions the board may need to take.

The suggested motion directs fiscal services to review the uses and amounts dispersed, who received funds, and amounts returned from each account. The committee set a completion date and presentation to the committee of March 5, 2024. The motion passed.

The audit scope, as described to the committee, will also assess eligibility questions raised previously about specific initiatives, including whether particular projects (the chair cited Habitat for Humanity as an example discussed in prior legal opinions) meet federal ARPA guidelines. The chair emphasized the goal is to provide a definitive determination on eligibility and to produce a clear accounting that will inform planning for remaining ARPA funds.

Next steps: fiscal services will undertake the audit and report back to the Finance & Administration Committee at its March 5 meeting. The committee did not vote on any remedial action during the Feb. 6 meeting beyond directing and scheduling the audit.