Finding Text
COVID-19 Coronavirus State and Local Fiscal Recovery Fund Assistance Listing Number 21.027 U.S. Department of Treasury Pass-Through Entity - City of Odessa, TX Criteria ? Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623). Condition ? The District reported COVID-19-related expenditures within the COVID-19 Coronavirus State and Local Fiscal Recovery Fund that were reimbursed via other sources. Questioned costs ? $762,548 ? Questioned costs were calculated as the value of the payroll costs charged to the COVID-19 Coronavirus State and Local Fiscal Recovery Fund that were also included on the Period 1 and 2 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution reports. Context ? The expenditure detail submitted to the City of Odessa for grant reporting purposes was tested. The District utilized payroll costs associated with their COVID-19 departments as a component of their reported expenditures. When reviewing the dates and department codes of the payroll costs submitted, expenditures were identified that were also included on expenditure details utilized for the Period 1 and 2 PRF reports. Effect ? The District submitted expenses to the City of Odessa that were reimbursed from PRF. Cause ? Internal controls were not in place to ensure the District did not submit expenses to multiple sources. The District did not exclude previously reimbursed expenditures in their reporting. Identification as a repeat finding, if applicable ? Not a repeat finding. Recommendation ? Policies and procedures over federal grant reporting should be modified to ensure reported expenditures are not double dipped. Views of responsible officials and planned corrective actions ? See attached corrective action plan for the District?s response to finding.