January 31, 2013 High-Dollar Overpayment Report

Speeches Shim

As required by Executive Order 13520 and OMB Memorandum M-I 0-13, this memo serves to notify you that USAID identified one high-dollar overpayment of$553,156.12 for the period October 1, 20 12, to December 31, 2012. USAID recovered the full amount.

In collaboration with the OIG, the Bureau for Management, Office of the Chief Financial Officer (M/CFO) identified the overpayment during a review and analysis of advances paid by the Agency_ M/CFO and the OIG discovered. that the payment method designated in the contract agreement was direct reimbursement. The document classification (payment method) was erroneously recorded in GLAAS and subsequently in Phoenix as a Letter of Credit (LOC). Due to the LOC classification in Phoenix, the outbound interface between Phoenix and the Department of Health and Human Services Payment Management System recorded the obligated funds under the contractor's LOC account.

The contractor submitted three invoices to USAID/Malawi for payment and erroneously drew down the equivalent amount under the LOC. The Agency fully recovered the overpayment through offsets of the contractor's future invoices. See Tab 1 for details regarding the discovery of the overpayment. See Tab 2 for analysis of the work performed.

Accordingly. USAID will submit a high-dollar overpayment report to the improper payments website developed by the Department of Treasury. Please contact Ms. Eileen Devitt, M/CFO at medevitt@usaid.gov or(202) 567-5125, if you have any questions.