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Oklahoma grand jury finds mismanagement in pandemic education relief funds

LEGAL NEWSLINE

Thursday, November 28, 2024

Oklahoma grand jury finds mismanagement in pandemic education relief funds

State AG
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Attorney General Gentner Drummond | Official Website

A Multi-County Grand Jury investigation in Oklahoma has revealed significant mismanagement and misspending of the Governor’s Emergency Educational Relief (GEER) fund, which was intended to mitigate educational disruptions caused by the COVID-19 pandemic. The report from the Grand Jury, although finding no criminal actions or willful corruption, described the handling of funds as "irresponsible, disappointing, and indefensible."

Attorney General Gentner Drummond initiated the investigation after dismissing a lawsuit against ClassWallet, a Florida vendor involved in GEER initiatives. Drummond argued that ClassWallet was not at fault for the mismanagement and suggested that state actors were negligent.

In 2020, several initiatives funded by GEER were launched by the Governor's office. These included an $8 million allocation to Bridge the Gap (BTG) for grants to low-income families and $10 million to Stay in School (SIS) for tuition assistance to private school students affected by the pandemic.

The Grand Jury report highlights how "the State failed to properly manage its federal grant money." It notes that despite recommendations from the U.S. Department of Education, a state agency experienced with federal grants was not chosen as fiscal agent. Instead, unvetted individuals were relied upon.

Bridge the Gap was managed by Every Kid Counts Oklahoma (EKCO), while Stay in School was led by American Federation for Children-Oklahoma (AFC-Oklahoma). The jury found no evidence that these individuals were vetted for their capability to oversee millions in federal grants.

"Though BTG and SIS did not meet programmatic requirements for GEER Fund monies," says the report, "their general frameworks were clearly consistent with meeting a different objective: establishing a school voucher program."

The Office of Educational Quality and Accountability (OEQA) was chosen as a pass-through entity despite lacking expertise in federal grant management. An August 2020 contract lacked safeguards for protecting personal information of applicants. The jury found concerning evidence of political data collection without consent.

Preferential treatment was also noted during application processes where some families applied early before public announcements. This led to inequitable distribution of funds according to jurors.

Mismanagement extended beyond applications; SIS faced issues such as excessive payments without proper documentation. More than $5.3 million went to families without financial hardship due to COVID-19.

Bridge the Gap saw about $1.7 million spent on non-educational items like electronics and Christmas trees due to lack of oversight from EKCO’s director.

The Grand Jury concludes these issues stemmed from delegating authority without proper vetting or agreements ensuring accountability: "The State bestowed these individuals and organizations with control over millions of dollars in federal funding without any vetting process or formal agreement assuring their accountability."

Recommendations include mandatory training requirements for agencies receiving substantial federal funding along with written policies on grant management guidance.

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