Audit 392561

Federal Program U.S. Department of Housing and Urban Development - Healthy Homes Production Program - ALN 14.913 Criteria Under OMB guidance, Public Law (Pub. L) No. 116-117, Payments Integrity Information Act of 2019, and Executive Order 13520 on reducing improper payments, federal agencies are required to take actions to prevent improper payments, review federal awards for such payments, and as applicable, recover improper payments, including any duplicate payment. Condition While working to provide a population of invoices for audit testing, management identified five invoices that were submitted for reimbursement twice, resulting in an overdraw of federal program money. Additionally, while performing audit procedures over cash management and reporting, we noted that there was no review and approval of reports submitted for reimbursement. The Organization is required to submit quarterly reports for reimbursement. Neither of the two reports selected for testing contained evidence regarding review or approval prior to submission. Cause Duplicate invoices were submitted due to a temporary process change at the Organization when there were federal government departmental changes occurring related to federal programs. The Organization’s process change resulted in multiple people submitting reimbursement for the same expenses. We also noted that the reports were prepared based on information provided by separate personnel, but there is no review or approval in place over reports once they are combined to check for accuracy prior to submission. Effect The Organization overdrew federal program money during the fiscal year due to duplicate invoice submission, resulting in unallowable costs being charged to the program and inaccurate financial reporting. Questioned Costs $16,303 Context With changes in the process for grant funding, the Organization prioritized submission of invoices for reimbursement. During this prioritization, the Organization implemented a temporary process change, resulting in the duplicate submission errors of five invoices and the overdraw related to the federal funds. The lack of appropriate review and approval allowed the duplicate submission to occur. Repeat Finding No Recommendation We recommend that Women for a Healthy Environment establish and follow a system of internal control related to the costs charged to Federal programs. The process should establish procedures and responsibilities for the documentation and review of costs incurred and charged to Federal awards. Review and approval of this documentation should be performed by a person other than the preparer prior to submission to the Federal agency. Management Response See corrective action plan included in this report package.