FAC Explorer

Audit 16604

FY End
2022-06-30
Total Expended
$878,773
Findings
2
Programs
1
Organization: Toledo Alliance for the Performing Arts (OH)
Year: 2022 Accepted: 2022-12-13
Auditor: Cla

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12283 2022-001 Material Weakness - P
588725 2022-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
59.075 Shuttered Venue Operators Grant Program $878,773 Yes 1

Contacts

Name Title Type
DZC7PX5P29N4 Randi Dier Auditee
4194180035 Christy Erb Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Toledo Alliance for the Performing Arts (TAPA) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of TAPA, it is not intended to and does not present the financial position, changes in net assets, or cash flows of TAPA.

Finding Details

Finding 2022-001
Type of Finding: ? Material Weakness in Internal Control over Financial Reporting Condition: A restatement was required of prior year net assets with donor restrictions. Criteria or specific requirement: Appreciation, under the rules of UPMIFA, is to be reported as net assets with donor restrictions until appropriated for expenditure. During 2022, it was determined that, although donor wishes were being adhered to, the appreciation on certain donor endowed funds was being reported as net assets without donor restrictions. Effect: Net assets with donor restrictions was understated by $1,969,617 at the beginning of the year. Cause: Toledo Alliance for the Performing Arts (TAPA) was following the guidance of the predecessor auditor and an attorney when adopting UPMIFA. Repeat Finding: No. Recommendation: Toledo Alliance for the Performing Arts should evaluate their financial reporting processes and controls to determine whether additional controls over the preparation of annual financial statements should be implemented to provide reasonable assurance that financial statements are prepared in accordance with GAAP and the requirements of UPMIFA. Views of responsible officials and planned corrective actions: Management understands that the board of trustees and management share the ultimate responsibility for the internal control system, including the preparation of the financial statements in accordance with GAAP, and feels they have taken the appropriate steps for an entity of their size. Since, the above condition was brought to their attention, management has thoroughly researched UPMIFA, including some of the common mistakes when applying the rules of UPMIFA, and understands what is to be done to correctly classify the appreciation of donor endowed funds going forward.
Finding 2022-001
Type of Finding: ? Material Weakness in Internal Control over Financial Reporting Condition: A restatement was required of prior year net assets with donor restrictions. Criteria or specific requirement: Appreciation, under the rules of UPMIFA, is to be reported as net assets with donor restrictions until appropriated for expenditure. During 2022, it was determined that, although donor wishes were being adhered to, the appreciation on certain donor endowed funds was being reported as net assets without donor restrictions. Effect: Net assets with donor restrictions was understated by $1,969,617 at the beginning of the year. Cause: Toledo Alliance for the Performing Arts (TAPA) was following the guidance of the predecessor auditor and an attorney when adopting UPMIFA. Repeat Finding: No. Recommendation: Toledo Alliance for the Performing Arts should evaluate their financial reporting processes and controls to determine whether additional controls over the preparation of annual financial statements should be implemented to provide reasonable assurance that financial statements are prepared in accordance with GAAP and the requirements of UPMIFA. Views of responsible officials and planned corrective actions: Management understands that the board of trustees and management share the ultimate responsibility for the internal control system, including the preparation of the financial statements in accordance with GAAP, and feels they have taken the appropriate steps for an entity of their size. Since, the above condition was brought to their attention, management has thoroughly researched UPMIFA, including some of the common mistakes when applying the rules of UPMIFA, and understands what is to be done to correctly classify the appreciation of donor endowed funds going forward.