KENTUCKY CHRISTIAN SENIOR HOUSING, INC.

Finding Reference Number: 2020-1 Title and CFDA Number of Federal Program: Section 8 Rental Assistance 14.195 Type of Finding: Financial Statement Finding Finding Resolution Status: Resolved Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: n/a Criteria: Internal control policies will detect any duplicate payments of invoices Statement of Condition: Management made a duplicate payment to a vendor in error. The error was subsequently discovered by management and a refund was requested and received. Cause: An invoice was received and paid by management for a trash compactor. The vendor sent a second invoice for the same item, but the invoice had a different amount due and a different invoice number. Management paid the second invoice. Purchase orders are not required for utility invoices so that additional control was not applicable in detecting this particular error. When the management discovered the error, they requested a refund from the vendor for the duplicate payment and it was received on May 15, 2020. Effect or Potential Effect: The internal controls in place detected the error, but could have been done in a more timely manner or prevented entirely. Auditor Non-Compliance Code: Other Questioned Costs: $18,434 Reportable Views of Responsible Officials: We received two invoices for the same item but with slightly different amounts and with different invoice numbers. Both invoices were paid, but management detected the mistake and took immediate actions to correct the error. The project received a refund for the overpayment. Context: The error was detected because it crossed over year end dates. The expenses were paid in one year but the refund was received in the subsequent year. Recommendation: Invoices should be reviewed more closely to prevent duplicate payments. Auditors? Summary of the Auditee?s Comments on the Findings and Recommendations: The management agent detected and corrected the error. The detection took longer due to the fact that the vendor sent a second invoice with a different invoice number and a slightly different payment amount. Also, purchase orders are not required for utility vendors, so even though they have that control in place, it did not help detect the error in the particular instance. However, the other controls the management has in place were able to detect and correct the error. Response Indicator: Agree Completion Date: 5/15/2020 Response: On May 15, 2020, the duplicate payment was refunded back to the Project.