Final Determination on Corrective Actions for Desk Review of the Commonwealth of Puerto Rico’s Use of Coronavirus Relief Fund Proceeds (OIG-CA-23-040)
Summary
Letter OIG-CA-27-002 dated October 1, 2026 from the Department of the Treasury Office of Inspector General to Stephanie Díaz-Vázquez, Director of Fiscal Recovery at the Commonwealth of Puerto Rico Department of Treasury, giving its final determination on corrective actions for the desk review of Puerto Rico's use of Coronavirus Relief Fund (CRF) proceeds (OIG-CA-23-040). It says an independent public accounting firm had identified total unsupported questioned costs of $33,681,692, including $20,670,220 for a private hospital assistance grant program and $7,602,356 for assistance to local municipalities. The letter states that between May 2025 and May 2026 Puerto Rico provided adequate documentation for all $33,681,692, so its corrective actions addressed the questioned costs. It is signed by Pauletta P. Battle, Assistant Inspector General for Audit.
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Full text
DEPARTMENT OF THE TREASURY
W ASHINGTON, D.C. 20220
OFFICE OF
INSPECTOR GENERAL
October 1, 2026
OIG-CA-27-002
Ms. Stephanie Díaz-Vázquez
Director of Fiscal Recovery
Commonwealth of Puerto Rico Department of Treasury
10 PASEO COVADONGA EDIF INTENDENTE RAMIREZ
San Juan, PR 00901
Re: Final Determination on Corrective Actions for Desk Review of the
Commonwealth of Puerto Rico’s Use of Coronavirus Relief Fund Proceeds
(OIG-CA-23-040)
Dear Ms. Díaz-Vázquez:
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), 1 established
the Coronavirus Relief Fund (CRF) and appropriated $150 billion for making
payments to states, District of Columbia, local, territorial, and tribal government
entities. CRF recipients may use the CRF award funds to cover costs that:
1. were necessary expenditures incurred due to the public health emergency
with respect to the Coronavirus Disease 2019 (COVID-19);
2. were not accounted for in the government’s budget most recently approved
as of March 27, 2020; and
3. were incurred during the period that began on March 1, 2020, and ended on
December 31, 2021, for states, local governments, and territories. In the
case of tribal governments, were incurred during the period that began on
March 1, 2020, and ended on December 31, 2022 (covered period).
Under a contract monitored by our office, a certified independent public accounting
firm (IPA) performed a desk review to evaluate the Commonwealth of Puerto Rico’s
(Puerto Rico) documentation supporting its use of CRF proceeds as reported in the
GrantSolutions 2 portal. In the desk review memorandum, 3 the IPA identified total
unsupported questioned costs of $33,681,692. Specifically,
• In the “contracts greater than or equal to $50,000” category, the IPA
identified unsupported questioned costs of $1,587,873 related to expenses
1
P.L. 116-136 (March 27, 2020)
2
GrantSolutions, a grant and program management Federal shared service provider under the
United States Department of Health and Human Services, developed a customized and user-
friendly reporting solution to capture the use of CRF payments from prime recipients.
3
Treasury OIG, Desk Review of the Commonwealth of Puerto Rico’s Use of Coronavirus Relief
Fund Proceeds, OIG-CA-23-040 (August 8, 2023)
Page 2
for medical supplies, COVID-19 related communication, and professional
consulting services.
• In the “grants greater than or equal to $50,000” category, the IPA identified
unsupported questioned costs of $20,670,220 related to a private hospital
assistance grant program that covered medical and payroll expenses.
• In the “transfer greater than or equal to $50,000” category, the IPA
identified unsupported questioned costs of $7,602,356 related to assistance
for local municipalities to cover COVID-19 expenses.
• In the “aggregate reporting less than $50,000” category, the IPA identified
unsupported questioned costs of $1,338,582 related to the payroll
protection and tourism program.
• In the “aggregate payments to individuals” category, the IPA identified
unsupported questioned costs of $2,482,661 related to the economic
benefit - student technology program.
In April 2025, we contacted Puerto Rico requesting the territory to provide
supporting documentation for the questioned costs. Between May 2025 and
May 2026, Puerto Rico provided adequate documentation for the $33,681,692
questioned costs. As such, Puerto Rico’s corrective actions addressed the
questioned costs identified in the desk review.
We appreciate the courtesies and cooperation provided to our staff during the desk
review follow-up. If you have any questions or require further information, please
contact me at (202) 927-5400, or a member of your staff may contact Olivia
Scott, Acting Audit Director, at (202) 277-1196.
Sincerely,
/s/
Pauletta P. Battle
Assistant Inspector General for Audit
cc: Michelle A. Dickerman, Deputy Assistant General Counsel, Department of
the Treasury
Jeffrey W. Stout, Acting Chief Program Officer, Office of Capital Access,
Department of the Treasury
Thao P. Tran, Acting Chief Operating Officer, Office of Capital Access,
Department of the Treasury
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