Audit 412190

The Cooperative did not have adequate review controls over requests for reimbursement to prevent invoices from being submitted for reimbursement more than once.Significant Deficiency: The Cooperative did not have adequate review controls over requests for reimbursement to prevent invoices from being submitted for reimbursement more than once. Compliance Requirement: Allowable Costs/Cost Principles and Cash Management Condition/Criteria: Federal funds should only be requested for allowable costs that have been incurred and have not previously been reimbursed. Requests for reimbursement should be supported by source documentation and reviewed to prevent duplicate reimbursement requests. Six invoices were included twice on RFR 6 and RFR 7, resulting in excess reimbursement requests totaling $167,167.27. Cause: The duplicate reimbursement request appears to have resulted from inadequate review controls over the preparation and approval of RFRs to ensure that invoices previously submitted for reimbursement were identified before subsequent RFRs were submitted. Effect: The Cooperative requested and received reimbursement for costs that had already been submitted, resulting in excess federal reimbursement of $167,167.27. The condition could result in noncompliance with allowable cost and cash management requirements and may require repayment or offset of the duplicate reimbursement. Recommendation: Management should strengthen review controls over RFR preparation and approval by maintaining a reimbursement tracking schedule by invoice, vendor, amount, and RFR number; reconciling each proposed RFR to prior submissions before filing; and requiring documented supervisory review to verify that invoices have not been previously submitted for reimbursement.