Finding 1216205 (2023-013)

Criteria: In accordance with the 2023 OMB Compliance Supplement, Part 3, Section C: Cash Management, when non-federal entities are funded under the reimbursement method, the supporting expenditures should be incurred prior to the date of the reimbursement request. Condition: During the testing of cash management requirements, we identified that the Republic submitted a duplicate drawdown request to the grantor agency. A drawdown request dated July 31, 2023, was submitted for $1,183,611. A subsequent drawdown request dated August 7, 2023, totaling $1,214,654, included the same expenditure details and supporting documentation used for the original $1,183,611 request. As a result, the July 31 drawdown request amount of $1,183,611 was duplicated within the August 7 drawdown request. No. Subaccount Subaccount Requested Amount Request Date Debit Date Schedule Number 1 21H8FCS41190C6 $ 1,183,611 7/31/2023 8/2/2023 83463 2 21H8FCS41190C6 $ 1,214,654 8/7/2023 8/9/2023 83480 Cause: The duplicate drawdown occurred due to lack of review and monitoring controls in preparing drawdown requests. Effect: The Republic received federal funds in excess of the allowable reimbursement and is not in compliance with applicable cash management requirements. The reportable questioned cost is the duplicated portion of the August 7 drawdown request, which amounted to $1,183,611. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: The Republic should strengthen the effectiveness of its existing reconciliation and review procedures to ensure duplicate drawdown requests are avoided. The Republic should require a check of prior drawdowns before submitting new requests and maintain a clear log to prevent re‑requesting the same expenditures. Views of Responsible Officials: The Republic’s Corrective Action Plan does not indicate disagreement and provides planned corrective action.