Finding Text
The Organization did not submit accurate information on its closeout report to SBA in 2023. A duplicate invoice was recorded in the accounting software for an expenditure after it was realized that the payee on the original check was incorrect. A second check was issued to the correct payee. The original physical check was properly voided, but the adjusting entry to reverse the original expenditure did not occur at that time. The error was discovered and corrected during the Organization’s preparation for their annual audit, subsequent to submitting the closeout report to SBA.