CITY OF ODESSA

Finding: 2024-002 - Reporting Type of Finding: Noncompliance and Material Weakness in Internal Control Over Compliance Federal Agency: U.S. Department of Treasury Federal Program Title: COVID 19 – Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: N/A; October 1, 2023 – September 30, 2024 Criteria or specific requirement Per 2 CFR 200.303(a), the City must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition During testing of reporting, we noted an amount of $310,037 of fiscal year 2024 expenditures were not included in the fiscal year 2024 quarterly reports submitted to the grantor agency. Additionally, we noted $57,426 of fiscal year 2025 expenditures incorrectly reported in the third quarter of fiscal year 2024. Questioned costs $0 Cause The under reporting of fiscal year 2024 expenditures was caused by allowable project costs being reclassified to the grant after the quarterly report submission dates. The inclusion of fiscal year 2025 expenditures in the fiscal year 2024 quarterly reports is due to insufficient review of program activity and improper reporting cut-off. Effect The U.S. Department of Treasury uses the reports internally for oversight purposes and to fulfill transparency and legal obligations. Improper reporting to the federal agency can lead to data inaccuracies. Repeat Finding No Recommendation We recommend the City review expenditure details thoroughly before submitting quarterly reports to the grantor agency. Views of Responsible Official(s) and Planned Corrective Actions See corrective action plan.