Maverick County Operation Lone Star Audit Flags $34K in Disallowed Grant Spending
County Auditor’s Office Responsible for Largest Overcharge in Operation Lone Star Funds
A state compliance review of Maverick County’s Operation Lone Star Grant #4376303, which covered the grant year from September 1, 2023, to August 31, 2024, uncovered $34,584.62 in disallowed expenses. The audit, conducted by the Office of Compliance and Monitoring, focused on spending between September 1, 2023, and March 31, 2024.
The most serious issue involved improper calculation of indirect costs. The County Auditor’s Office applied an 11.49% rate to grant funds, exceeding the 10% ceiling allowed under federal guidelines. This misstep resulted in $21,140.28 in disallowed indirect costs, the largest single category of flagged spending in the report.
State auditors noted that Maverick County failed to correctly apply the Modified Total Direct Cost method, which excludes subcontractor amounts over $25,000 from indirect cost calculations. The oversight inflated the county’s claims and required the submission of a corrected financial report.
Other Expenses Denied for Lack of Documentation or Budget Approval
The remaining disallowed costs came from payroll issues and unauthorized purchases. Several employees were paid with grant funds despite incomplete or inconsistent records showing hours worked. In one case, an individual received payment without logging any time under the Operation Lone Star program. These personnel-related disallowances totaled $3,577.89.
Auditors also flagged $9,866.45 in spending on items that were either not included in the approved grant budget or lacked documentation.
Maverick County will not be reimbursed for the disallowed indirect charges and provided policy updates in response to the findings.
The Maverick Take
The report confirms what many in the community have suspected—there’s a breakdown in accountability when it comes to how Maverick County handles outside funding. The fact that over $21,000 of the disallowed total came from a basic miscalculation by the Auditor’s Office isn’t just a clerical error; it’s a costly failure in oversight. If public funds can be mismanaged this easily, residents have every right to question the level of diligence applied across all county operations. Compliance should not come after the fact—it should be baked into every step of the process.
A new county auditor is expected to be appointed soon by the district judges.
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