OIG-CA-25-016 - Recommendation 1-1

Castro recommends Office of Inspector General (OIG) follow-up with Arizona's management to confirm if the $135,747,413 noted as unsupported expenditures within the Transfers greater than equal to $50,000 and Aggregate Payments to Individuals payment types can be supported. If support is not provided, Treasury OIG should recoup the funds or request Arizona's management to provide support for replacement expenses, not previous charges, that were eligible during the CRF period to performance. In addition, Castro recommended that Treasury OIG request the Arizona management provide support for replacement expenses, not previously charged, that were eligible during the CRF period of performance for the $74,044 of ineligible cost charged to the Grants greater than or equal to $50,000 and Aggregate Payments to Individuals payment types. If support is not provided, Treasury OIG should recoup the funds. Further, based on Arizona managements responsiveness to Treasury OIG's request and management's ability to provide sufficient documentation and/or replace unsupported and ineligible transactions charged to CRF with valid expenditures, Castro recommends Treasury OUIG determine the feasibility od conducting and audit for the Grants greater than or equal to $50,000, and Aggregate Payments to Individuals payment types.