OIG-CA-26-010: Final Determination on Corrective Actions — City of Dallas, Texas (December 18, 2025)

Summary

Letter of December 18, 2025 (OIG-CA-26-010) from the Treasury Office of Inspector General to Jack W. Ireland, Jr., Chief Financial Officer of the City of Dallas, giving its final determination on corrective actions after the desk review of the City of Dallas, Texas’ use of Coronavirus Relief Fund proceeds (OIG-CA-23-028). In that review an independent public accounting firm identified $2,211,594 in unsupported questioned costs in the “aggregate payments to individuals” category, for non-substantially dedicated payroll, meaning staff who performed COVID-19 related tasks part-time. After the OIG contacted the city in April 2025, Dallas provided eligible replacement public health and safety payroll expenses for the $2,211,594 in May 2025, which the OIG found addressed the questioned costs. Pauletta Battle, Acting Assistant Inspector General for Audit, signs the letter.

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                                         DEPARTMENT OF THE TREASURY
                                                W ASHINGTON, D.C. 20220




     OFFICE OF
INSPECTOR GENERAL
                                                 December 18, 2025

           OIG-CA-26-010

           Mr. Jack W. Ireland, Jr.
           Chief Financial Officer
           City of Dallas
           1500 Marilla St
           Dallas, TX 75201

           Re: Final Determination on Corrective Actions for Desk Review of the City of
           Dallas, Texas’ Use of Coronavirus Relief Fund Proceeds (OIG-CA-23-028)

           Dear Mr. Ireland:

           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 governments
           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 City of Dallas’ (Dallas)
           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 $2,211,594 in the “aggregate payments to
           individuals” category. The transactions tested were related to non-substantially
           dedicated 4 payroll 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 City of Dallas, Texas’ Use of Coronavirus Relief Fund
               Proceeds, OIG-CA-23-028 (July 20, 2023)
           4
               Non-substantially dedicated payroll costs meant that personnel performed COVID-19 related task
               on a part-time basis.
Page 2

In April 2025, we contacted Dallas requesting the city to provide supporting
documentation for the questioned costs. In May 2025, Dallas provided eligible
replacement public health and safety payroll expenses for the $2,211,594
questioned costs. As such, Dallas’ 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) 927-5792, or a member of your staff may contact Olivia
Scott, Acting Audit Director, at (202) 927-9635.


Sincerely,


/s/

Pauletta Battle
Acting Assistant Inspector General for Audit



cc:   Michelle A. Dickerman, Deputy Assistant General Counsel, Department of
         the Treasury
      Danielle Christensen, Deputy Chief Program Officer for State and Local
         Programs, Office of Capital Access, 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, Department of the Treasury


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