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The distribution of billions of dollars of federal COVID-19 relief funds in Arizona, like many other states, was marred by fraud, mismanagement and lack of oversight, according to a new report issued last week by the Arizona Auditor General.
New report highlights myriad issues with federal COVID relief spending in Arizona
While the report didn’t uncover any bombshell new findings, it did bring together all in one place the failings of several Arizona state departments in administering the distribution of the money and overseeing organizations to which it awarded the funds.
In all, the federal government awarded Arizona $77.8 billion in pandemic relief from March 2020 through February 2022, though the report focuses only on the funds spent during the 2021 fiscal year, which ran from July 2020 through June 2021.
The various state departments charged with overseeing the distribution of the funds meant to lessen the impact of the COVID-19 pandemic said that inadequate staffing and staff turnover were major contributors to their lack of oversight. .
The office had to return an untold amount of unspent funds to the federal government from the Education Stabilization Fund because they were not disbursed or spent within a required timeframe. As of June, 30, 2021, it had more than $18 million in unspent ESF money. The office didn’t monitor some recipients’ activities or compliance with award terms for the fund, meaning that it may have to repay $164,221.
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The office also failed to report information to the government about $28.9 million in awards.
Ducey’s office did not respond to a request for comment. . ."
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