FAC Explorer

Finding 551394 (2024-001)

-
Requirement
AB
Questioned Costs
$1
Year
2024
Accepted
2025-03-31
Audit: 352093
Organization: St. Lukes Health Network, Inc. and Controlled Entities (PA)
Auditor: Pricewaterhousecoopers LLP

AI Summary

  • Core Issue: Duplicate invoices totaling $106,000 were submitted for reimbursement, violating federal payment guidelines.
  • Impacted Requirements: 2 CFR Part 200 defines improper payments, which include duplicate payments that should not have been made.
  • Recommended Follow-Up: Implement a review process for prior submissions to prevent future duplicate invoices and refund the $106,000 overdrawn amount.

Finding Text

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.

Corrective Action Plan

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 The Network agrees with the finding, and will make the following enhancements to the process: The current process includes the following: 1. Accounts Payable produces a report for each project listing the invoices, vendor, and amounts. 2. The Vice President of Finance reviews the report and follows-up with Accounts Payable and/or the project manager. 3. Once the reports appear to be accurate, the Vice President of Finance creates subtotals on the file for Construction, FFE, Contingency. These are needed for the USDA Application form with balances remaining calculated. 4. The Administrative Assistant, Finance, prepares the USDA application form and obtains the signature of the Senior Vice President of Finance. 5. The Administrative Assistant, Finance, sends the Application and a copy of the invoices to the USDA Area Specialist for approval. 6. The Application is digitally signed by the Area Specialist, USDA Rural Development, and a copy is sent back to the Administrative Assistant, Finance, to maintain with our records. Enhanced Controls The Senior Financial Analyst will review the Application/Requisition and the individual invoices to verify they were eligible per the letter of conditions. Additionally, she will compare the invoices on the current requisition to the last two requisitions to verify there are no duplicate invoices. Both the Senior Financial Analyst and the Vice President of Finance will sign-off after their review to show evidence of review and approval. For inquiries regarding this finding, please contact Evelyn Diaz, Senior Financial Analyst, and Carl Alberto, Vice President of Finance, who are responsible for the corrective action. Sincerely, Dean Silfies AVP, Financial Accounting & Reporting Services

Categories

Questioned Costs Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $92.77M
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $1.73M
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.65M
93.958 Block Grants for Community Mental Health Services $1.04M
84.268 Federal Direct Student Loans $736,948
14.241 Housing Opportunities for Persons with Aids $714,664
93.884 Primary Care Training and Enhancement $515,204
84.063 Federal Pell Grant Program $328,671
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $269,113
93.155 Rural Health Research Centers $254,690
21.027 Coronavirus State and Local Fiscal Recovery Funds $208,842
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $182,497
93.359 Nurse Education, Practice Quality and Retention Grants $148,452
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $143,563
93.558 Temporary Assistance for Needy Families $68,239
17.278 Wioa Dislocated Worker Formula Grants $44,180
93.837 Cardiovascular Diseases Research $30,625
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $1,111
93.395 Cancer Treatment Research $280