OIG-CA-26-021: Final Determination on Corrective Actions — State of California (February 17, 2026)

Summary

Letter of February 17, 2026 (OIG-CA-26-021) from the Treasury Office of Inspector General to Frances Parmelee of the California Department of Finance’s Oversight and Accountability Unit, giving its final determination on corrective actions after the desk review of the State of California’s use of Coronavirus Relief Fund proceeds (OIG-CA-23-025). In that review an independent public accounting firm identified $6,952 in unsupported and ineligible questioned costs in the “aggregate reporting less than $50,000” category, for subscription costs incurred outside of the covered period. After the OIG requested supporting documentation in December 2024, California provided eligible replacement expenses for the $6,952 between January and April 2025, which the OIG found addressed the questioned costs. Pauletta P. Battle, Assistant Inspector General for Audit, signs the letter.

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Full text

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




     OFFICE OF
INSPECTOR GENERAL
                                                   February 17, 2026

             OIG-CA-26-021

             Ms. Frances Parmelee
             Department of Finance
             Oversight and Accountability Unit
             915 L Street
             Sacramento, CA 95814

             Re: Final Determination on Corrective Actions for Desk Review of the State of
             California’s Use of Coronavirus Relief Fund Proceeds (OIG-CA-23-025)

             Dear Ms. Parmelee:

             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, performed a desk review to evaluate the State of California’s documentation
             supporting its uses of CRF proceeds as reported in the GrantSolutions 2 portal. In
             the desk review memorandum, 3 the independent public accounting firm identified
             total unsupported and ineligible questioned costs of $6,952 in the “aggregate
             reporting less than $50,000” category for ineligible subscription costs incurred
             outside of the covered period.

             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 State of California’s Use of Coronavirus Relief Fund
                 Proceeds, OIG-CA-23-025 (July 7, 2023)


                                                                                                            1
In December 2024, we requested supporting documentation from California.
Between January and April 2025, California provided documentation demonstrating
eligible replacement expenses for the $6,952 in questioned costs. Accordingly,
California’s corrective actions addressed the questioned costs identified in the desk
review.

We appreciate the courtesy and cooperation provided to our staff during the desk
review. If you have any questions or require further information, please contact me
at (202) 927-5400, or a member of your staff may contact Dianna Jones, Audit
Director, at (202) 997-4491.

Sincerely,

/s/


Pauletta P. Battle
Assistant Inspector General for Audit


cc: Danielle R. Christensen, Deputy Chief Program Officer for State and Local
      Programs, Office of Capital Access, Department of the Treasury
    Michelle A. Dickerman, Deputy Assistant General Counsel, Department of the
      Treasury
    Thao P. Tran, Acting Chief Operating Officer, Department of the Treasury
    Jeffery W. Stout, Acting Chief Program Officer, Office of Capital Access,
     Department of the Treasury
    Aaron Edwards, Chief, Research and Analysis Unit, Department of Finance,
     State of California
    Audrey Bazos, Principal Program Budget Analyst, Research and Analysis Unit,
     Department of Finance, State of California




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