Finding 1127836 (2024-001)

2024-001 – Duplicate Invoices Submitted for Reimbursement Cluster: Community Facilities Loan and Grant Cluster Federal Granting Agency: Department of Agriculture Award Name: Rural Housing Service Assistance Listing #: 10.766 Assistance Listing Title: Community Facility Loans and Grants Award Year: July 1, 2023 – June 30, 2024 Criteria The 2 CFR Part 200 defines an improper payment as a payment that should not have been made or that was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements. This definition includes duplicate payments as an example. Condition Through PwC's testing of the reimbursement of the expenditures relating to the Facilities Loan, it was noted that three invoices submitted for reimbursement were duplicates for which the Company had already been reimbursed. These duplicated invoices totaled $106,000. Cause As part of management process for providing invoices for reimbursement, it was noted that there was not a process to review the prior invoice submission to make sure that invoices had not been previously submitted for reimbursement. Effect The submission for reimbursement relating to the Facilities Loans were overdrawn by $106,000. Questioned Costs $106,000 Recommendation PwC recommended the Company refund the overdrawn amount of $106,000. Management should also implement a control to review the prior reimbursement submissions to verify that there are no duplicate invoices submitted in the current period. Management’s Views and Corrective Action Plan Management's views and corrective action plan is included at the end of this report after the summary schedule of prior audit findings and status.