The county's internal auditor reported that in a sampling of contracts and expenditures paid for with American Rescue Plan Act dollars, Orange County had complied with all federal monitoring rules and provided adequate monitoring of contracts funded with the pandemic relief funds.
In September, when the OC Board of Supervisors approved a slew of reforms to improve the county's spending oversight, the internal auditor was directed to conduct risk assessments of all federal ARPA-funded contracts to ensure auditing and monitoring requirements were being met. Each of the five supervisors received $10 million in COVID-relief funds to spend at their discretion within the communities they represent.
The audit and reforms were in response to county lawsuits against Viet America Society and Hand to Hand Relief Organization Inc., two nonprofits former First District Supervisor Andrew Do directed millions in discretionary funds to for meal programs. County officials allege in the suit the two groups had missed multiple deadlines to submit the required audits and documentation; federal and local prosecutors say much of the funding ended up being used for purposes other than feeding the community's elderly and people with disabilities as intended.
In October, Do pled guilty to a federal bribery charge for accepting more than $550,000 in bribes to direct $10 million in pandemic funds to the nonprofit VAS, where his daughter worked.
The audit, which was posted Wednesday, Feb. 5, on the county's website, reviewed 58 high-risk expenditures, totaling $203.4 million, and 31 contracts. All of which found the county in compliance, according to the internal auditor's report. The auditor excluded four payments made to Viet America Society and Hand to Hand Relief Organization, totaling $8.2 million, "that were allegedly implicated as part of the misconduct involving the former District 1 supervisor, Andrew Do."
Fourth District Supervisor Doug Chaffee said in a statement he is glad to see no issues reported.
"Oversight is crucially important to county operations and ensure all parties involved are appropriately using monies to deliver contracted services," Chaffee said. "I hope this report dispels any worry or concern the public may have had regarding any ARPA-funded projects and helps restore the broken trust initiated by disgraced former Supervisor Andrew Do."
The auditor did make three recommendations for ways the county could improve, including requiring risk assessment of county contracts regardless of funding source or funding source requirements and creating formal oversight requirements, such as documentation rules.
"These enhancements will strengthen county oversight to ensure entities use funds properly and in accordance with their contract/agreement," the auditor report said. "They also align with board reforms designed to improve the integrity and efficiency of the way the county manages funds and awards contracts."