OIG-CA-26-012: Determination on Corrective Actions for Desk Review of State of Nebraska's Use of Coronavirus Relief Fund

Summary

Treasury Office of Inspector General letter OIG-CA-26-012 of December 19, 2025 to Philip Olsen, State Accounting Administrator at the Nebraska Department of Administrative Services, giving its final determination on corrective actions after a desk review of Nebraska’s use of Coronavirus Relief Fund proceeds (OIG-CA-25-028). The review identified $15,830,130 in unsupported and ineligible questioned costs, including unsupported costs of $6,203,295 in grants of $50,000 or more and $9,596,834 in transfers of $50,000 or more, and smaller ineligible amounts such as $2,063 for drone operating training. Nebraska provided adequate documentation for $14,596,834 and returned the remaining $1,233,296 to the Department of the Treasury. The OIG states that the corrective actions addressed the questioned costs. The letter is signed by Pauletta Battle, Acting Assistant Inspector General for Audit.

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Issuer: Inspector general and oversight reports
Document type: Oig Ca 26 012 Final Determination On Corrective Actions For Desk Review Of State Of Nebras

Cite this document

“OIG-CA-26-012: Determination on Corrective Actions for Desk Review of State of Nebraska's Use of Coronavirus Relief Fund.” Original at oig.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/oig-ca-26-012-final-determination-on-corrective-actions-for-desk-review-of-state-of-nebraska-s-use-of-co/, SHA-256 34d782cbb56bd51c8277a4a5aea5990bbdfa23978bef52b8dab940bec6fef518.

Full text

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




     OFFICE OF
INSPECTOR GENERAL
                                                December 19, 2025

           OIG-CA-26-012

           Mr. Philip Olsen
           State Accounting Administrator
           Nebraska Department of Administrative Services
           1445 K ST RM 2316
           Lincoln, NE 68508

           Re: Final Determination on Corrective Actions for Desk Review of State of
           Nebraska’s Use of Coronavirus Relief Fund Proceeds (OIG-CA-25-028)

           Dear Mr. Olsen:

           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 Nebraska’s 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 and ineligible
           questioned costs of $15,830,130. Specifically,

                •   In the “grants greater than or equal to $50,000” category, the IPA identified
                    unsupported questioned costs of $6,203,295 related to a reimbursable grant
                    transaction for public health and safety payroll expenses; a variance between

           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 Nebraska’s Use of Coronavirus Relief Fund
               Proceeds, OIG-CA-25-028 (December 19, 2024)
Page 2

          the supporting documentation and the sub-recipient’s general ledger
          expenditures for a workforce grant; and a zoo stimulus grant program.
      •   In the “transfers greater than or equal to $50,000” category, the IPA
          identified unsupported questioned costs of $9,596,834 related to a sub-
          recipient’s public health and safety payroll expenses; and ineligible
          questioned costs of $21,863 related to indirect administrative costs.
      •   In the “aggregate reporting less than $50,000” category, the IPA identified
          ineligible questioned costs of $2,063 related to drone operating training.
      •   In the “aggregate payments to individuals” category, the IPA identified
          ineligible questioned costs of $6,075 related to payroll expenses.

In April 2025, we contacted Nebraska requesting the state to provide supporting
documentation for the questioned costs. In May and August 2025, Nebraska
provided adequate documentation for $14,596,834 and returned the remaining
$1,233,296 questioned costs to the Department of the Treasury, respectively. As
such, Nebraska’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) 927-5792, 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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Original: oig.treasury.gov