FAC Explorer

Audit 10557

FY End
2023-06-30
Total Expended
$829,700
Findings
2
Programs
2
Organization: Tennessee Performing Arts Center Management Corporation (TN)
Year: 2023 Accepted: 2024-01-09
Auditor: Kraftcpas PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
8052 2023-001 Significant Deficiency - B
584494 2023-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $814,700 Yes 1
45.024 Promotion of the Arts_grants to Organizations and Individuals $15,000 - 0

Contacts

Name Title Type
RHFDWLR4TNM8 Julie Gillen Auditee
6157824033 Kenneth Younstead Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance, however, no indirect costs have been charged to the Organization’s grants. The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance (the “Schedules”) includes the federal and state grant activity of the Organization and is presented on the accrual basis of accounting. The information in the Schedules of Expenditures of Federal Awards and State Financial Assistance is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) and the Audit Manual issued by the Comptroller of the Treasury of the State of Tennessee. Because the Schedules present only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance, however, no indirect costs have been charged to the Organization’s grants. The Organization did not pass any federal awards through to subrecipients.

Finding Details

Finding 2023-001
Federal Program Information Funding Agency: U.S. Department of Treasury Federal ALN: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Pass Through Agency: Tennessee Arts Commission Criteria The Uniform Guidance contains cost principles which establish guidelines for allowable charges to federal grants. According to section 2 CFR 200.425, only audit services required by, and performed in accordance with, the Single Audit Act are allowed to be charged to federal grants. Condition Out of a sample of 25 charges to the grant that were tested, 1 of the charges was unallowed. The charge was determined to be unallowed as it was for the 2022 audit, the majority of which was not required by the Single Audit Act. Cause The Organization has only in recent years began to receive federal funding and therefore did not have a clear understanding of the cost principles contained in the Uniform Guidance. Effect Improper charges, in addition to those identified above, could be submitted to grantors for reimbursement. Questioned Costs $35,125   Auditor’s Recommendation TPAC should ensure that charges to federal grants are allowable in accordance with cost principles contained in Uniform Guidance. Additional training should be obtained to gain a further understanding of these requirements. Management Response Management agrees with finding. TPAC Grants contacted the pass-through agency to offer a solution, to replace the unallowable expense with an allowable expense. The Organization will also have TPAC Grants as well as TPAC Finance take training on Uniform Guidance to gain a better understanding NEW Dof these requirements in the future.
Finding 2023-001
Federal Program Information Funding Agency: U.S. Department of Treasury Federal ALN: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Pass Through Agency: Tennessee Arts Commission Criteria The Uniform Guidance contains cost principles which establish guidelines for allowable charges to federal grants. According to section 2 CFR 200.425, only audit services required by, and performed in accordance with, the Single Audit Act are allowed to be charged to federal grants. Condition Out of a sample of 25 charges to the grant that were tested, 1 of the charges was unallowed. The charge was determined to be unallowed as it was for the 2022 audit, the majority of which was not required by the Single Audit Act. Cause The Organization has only in recent years began to receive federal funding and therefore did not have a clear understanding of the cost principles contained in the Uniform Guidance. Effect Improper charges, in addition to those identified above, could be submitted to grantors for reimbursement. Questioned Costs $35,125   Auditor’s Recommendation TPAC should ensure that charges to federal grants are allowable in accordance with cost principles contained in Uniform Guidance. Additional training should be obtained to gain a further understanding of these requirements. Management Response Management agrees with finding. TPAC Grants contacted the pass-through agency to offer a solution, to replace the unallowable expense with an allowable expense. The Organization will also have TPAC Grants as well as TPAC Finance take training on Uniform Guidance to gain a better understanding NEW Dof these requirements in the future.