Final Determination on Corrective Actions - State of Tennessee OIG-27-004
Summary
A Department of the Treasury Office of Inspector General letter, OIG-27-004, dated October 2, 2026, to Felenceo M. Hill, Department Controller of the Tennessee Department of Finance & Administration. It gives the final determination on corrective actions for the desk review of the State of Tennessee's use of Coronavirus Relief Fund proceeds (OIG-CA-23-035). It recalls that the CARES Act established the Coronavirus Relief Fund and appropriated $150 billion for payments to states and other governments, and sets out the cost criteria CRF recipients must meet.
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DEPARTMENT OF THE TREASURY
W ASHINGTON, D.C. 20220
OFFICE OF
INSPECTOR GENERAL
October 2, 2026
OIG-27-004
Ms. Felenceo M. Hill
Department Controller, Department of Finance & Administration
State of Tennessee
312 Rosa L Parks Avenue
Nashville, TN 37243-1102
Re: Final Determination on Corrective Actions for the Desk Review of State of
Tennessee’s Use of Coronavirus Relief Fund Proceeds (OIG-CA-23-035)
Dear Ms. Hill:
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 State of Tennessee’s
(Tennessee) documentation supporting its use of CRF proceeds as reported in the
GrantSolutions 2 portal. In the desk review memorandum, 3 the IPA identified total
ineligible and unsupported questioned costs of $1,162,363.61. Specifically,
• In the “grants greater than or equal to $50,000” category, the IPA identified
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 State of Tennessee’s Use of Coronavirus Relief Fund Proceeds,
OIG-CA-23-035 (July 26, 2023)
Page 2
o ineligible questioned costs of $1,000,800.75 related to the European
Strategic Plan4 and advertising costs; and
o unsupported questioned costs of $157,953.72 related to grant
administrative costs.
• In the “aggregate payments to individuals” category, the IPA identified
ineligible questioned costs of $3,609.14 related to a longevity leave payroll
expense and a bonus payment.
In April 2024, we contacted Tennessee requesting the state to provide supporting
documentation for the questioned costs. In April 2026, Tennessee returned
$1,162,363.61 to the Department of the Treasury. As such, Tennessee’s
corrective action 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 Battle
Assistant Inspector General for Audit
cc: Michelle A. Dickerman, Deputy Assistant General Counsel, Department of
the Treasury
Jeffery 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
Eugene H. Neubert, Deputy Commissioner, Department of Finance &
Administration, State of Tennessee
4
A comprehensive framework designed to help increase travel and tourism visitation from
European markets to rebuild short-term post pandemic business with mid to long-term
sustainable growth.
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