2022-002 National Endowment for the Arts Promotion of the Arts Partnership Agreements, 45.025 Procurement, Suspension and Debarment, and Subrecipient Monitoring Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 45.025 on the Schedule of Expenditures of Federal Awards Criteria: Uniform Guidance set forth the procurement, suspension and debarment, and subrecipient monitoring standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension and debarment, and subrecipient monitoring, it was identified that the Organization does not check for suspension and debarment before signing subawards with subgrantees. Cause: Lack of understanding of all of the specific requirements under the Uniform Guidance that controls were not adequately designed to ensure compliance with all of these requirements. Effect: By not reviewing the suspension and debarment before signing a subaward, the Organization could grant funds to a subrecipient that was suspended or debarred and need to void the subgrant award. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 transactions out of 934 total transactions was selected for testing. Required documentation to satisfy suspension and debarment prior to entering into a subgrant was not performed for all 60 of the items selected. Repeat Finding from Prior Year: No Recommendation: We recommend that management maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to ensure vendors are not suspended or debarred prior to signing the subaward. Views of Responsible Officials: Management agrees with this finding.
2022-003 National Endowment for the Arts Promotion of the Arts Partnership Agreements, 45.025 Allowable Activities and Costs and Period of Performance Material Weakness in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards under assistance listing 45.025 on the Schedule of Expenditures of Federal Awards Criteria: The Organization?s internal control structure should be designed to properly follow the allocation methodology for employees? pay to each grant, in accordance with the policy established by the Organization. Condition: The Organization has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, but the controls did not operate as designed in certain instances. Cause: The Organization has a process for allocating employee wages based on hours worked, however, the retroactive adjustment to employee pay, bonus allocation for one employee, and one pay period for one employee did not follow this process. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of six employees out of 27 was selected for testing, which accounted for $249,558 of $2,212,036 of federal program expenditures. Five of the six employees tested did not have the retroactive pay increases allocated or calculated properly, one employee had an error in bonus allocation, and one employee had an error in the calculation of payroll allocated for one pay period. The errors are estimated to be approximately $5,385 over the sample. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over timesheet allocation to ensure pay is properly allocated to each grant in accordance with the policy established by the Organization. Views of Responsible Officials: Management agrees with this finding.
2022-002 National Endowment for the Arts Promotion of the Arts Partnership Agreements, 45.025 Procurement, Suspension and Debarment, and Subrecipient Monitoring Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 45.025 on the Schedule of Expenditures of Federal Awards Criteria: Uniform Guidance set forth the procurement, suspension and debarment, and subrecipient monitoring standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension and debarment, and subrecipient monitoring, it was identified that the Organization does not check for suspension and debarment before signing subawards with subgrantees. Cause: Lack of understanding of all of the specific requirements under the Uniform Guidance that controls were not adequately designed to ensure compliance with all of these requirements. Effect: By not reviewing the suspension and debarment before signing a subaward, the Organization could grant funds to a subrecipient that was suspended or debarred and need to void the subgrant award. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 transactions out of 934 total transactions was selected for testing. Required documentation to satisfy suspension and debarment prior to entering into a subgrant was not performed for all 60 of the items selected. Repeat Finding from Prior Year: No Recommendation: We recommend that management maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to ensure vendors are not suspended or debarred prior to signing the subaward. Views of Responsible Officials: Management agrees with this finding.
2022-003 National Endowment for the Arts Promotion of the Arts Partnership Agreements, 45.025 Allowable Activities and Costs and Period of Performance Material Weakness in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards under assistance listing 45.025 on the Schedule of Expenditures of Federal Awards Criteria: The Organization?s internal control structure should be designed to properly follow the allocation methodology for employees? pay to each grant, in accordance with the policy established by the Organization. Condition: The Organization has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, but the controls did not operate as designed in certain instances. Cause: The Organization has a process for allocating employee wages based on hours worked, however, the retroactive adjustment to employee pay, bonus allocation for one employee, and one pay period for one employee did not follow this process. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of six employees out of 27 was selected for testing, which accounted for $249,558 of $2,212,036 of federal program expenditures. Five of the six employees tested did not have the retroactive pay increases allocated or calculated properly, one employee had an error in bonus allocation, and one employee had an error in the calculation of payroll allocated for one pay period. The errors are estimated to be approximately $5,385 over the sample. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over timesheet allocation to ensure pay is properly allocated to each grant in accordance with the policy established by the Organization. Views of Responsible Officials: Management agrees with this finding.
2022-002 National Endowment for the Arts Promotion of the Arts Partnership Agreements, 45.025 Procurement, Suspension and Debarment, and Subrecipient Monitoring Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 45.025 on the Schedule of Expenditures of Federal Awards Criteria: Uniform Guidance set forth the procurement, suspension and debarment, and subrecipient monitoring standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension and debarment, and subrecipient monitoring, it was identified that the Organization does not check for suspension and debarment before signing subawards with subgrantees. Cause: Lack of understanding of all of the specific requirements under the Uniform Guidance that controls were not adequately designed to ensure compliance with all of these requirements. Effect: By not reviewing the suspension and debarment before signing a subaward, the Organization could grant funds to a subrecipient that was suspended or debarred and need to void the subgrant award. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 transactions out of 934 total transactions was selected for testing. Required documentation to satisfy suspension and debarment prior to entering into a subgrant was not performed for all 60 of the items selected. Repeat Finding from Prior Year: No Recommendation: We recommend that management maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to ensure vendors are not suspended or debarred prior to signing the subaward. Views of Responsible Officials: Management agrees with this finding.
2022-003 National Endowment for the Arts Promotion of the Arts Partnership Agreements, 45.025 Allowable Activities and Costs and Period of Performance Material Weakness in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards under assistance listing 45.025 on the Schedule of Expenditures of Federal Awards Criteria: The Organization?s internal control structure should be designed to properly follow the allocation methodology for employees? pay to each grant, in accordance with the policy established by the Organization. Condition: The Organization has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, but the controls did not operate as designed in certain instances. Cause: The Organization has a process for allocating employee wages based on hours worked, however, the retroactive adjustment to employee pay, bonus allocation for one employee, and one pay period for one employee did not follow this process. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of six employees out of 27 was selected for testing, which accounted for $249,558 of $2,212,036 of federal program expenditures. Five of the six employees tested did not have the retroactive pay increases allocated or calculated properly, one employee had an error in bonus allocation, and one employee had an error in the calculation of payroll allocated for one pay period. The errors are estimated to be approximately $5,385 over the sample. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over timesheet allocation to ensure pay is properly allocated to each grant in accordance with the policy established by the Organization. Views of Responsible Officials: Management agrees with this finding.
2022-002 National Endowment for the Arts Promotion of the Arts Partnership Agreements, 45.025 Procurement, Suspension and Debarment, and Subrecipient Monitoring Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 45.025 on the Schedule of Expenditures of Federal Awards Criteria: Uniform Guidance set forth the procurement, suspension and debarment, and subrecipient monitoring standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension and debarment, and subrecipient monitoring, it was identified that the Organization does not check for suspension and debarment before signing subawards with subgrantees. Cause: Lack of understanding of all of the specific requirements under the Uniform Guidance that controls were not adequately designed to ensure compliance with all of these requirements. Effect: By not reviewing the suspension and debarment before signing a subaward, the Organization could grant funds to a subrecipient that was suspended or debarred and need to void the subgrant award. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 transactions out of 934 total transactions was selected for testing. Required documentation to satisfy suspension and debarment prior to entering into a subgrant was not performed for all 60 of the items selected. Repeat Finding from Prior Year: No Recommendation: We recommend that management maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to ensure vendors are not suspended or debarred prior to signing the subaward. Views of Responsible Officials: Management agrees with this finding.
2022-003 National Endowment for the Arts Promotion of the Arts Partnership Agreements, 45.025 Allowable Activities and Costs and Period of Performance Material Weakness in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards under assistance listing 45.025 on the Schedule of Expenditures of Federal Awards Criteria: The Organization?s internal control structure should be designed to properly follow the allocation methodology for employees? pay to each grant, in accordance with the policy established by the Organization. Condition: The Organization has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, but the controls did not operate as designed in certain instances. Cause: The Organization has a process for allocating employee wages based on hours worked, however, the retroactive adjustment to employee pay, bonus allocation for one employee, and one pay period for one employee did not follow this process. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of six employees out of 27 was selected for testing, which accounted for $249,558 of $2,212,036 of federal program expenditures. Five of the six employees tested did not have the retroactive pay increases allocated or calculated properly, one employee had an error in bonus allocation, and one employee had an error in the calculation of payroll allocated for one pay period. The errors are estimated to be approximately $5,385 over the sample. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over timesheet allocation to ensure pay is properly allocated to each grant in accordance with the policy established by the Organization. Views of Responsible Officials: Management agrees with this finding.
2022-002 National Endowment for the Arts Promotion of the Arts Partnership Agreements, 45.025 Procurement, Suspension and Debarment, and Subrecipient Monitoring Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 45.025 on the Schedule of Expenditures of Federal Awards Criteria: Uniform Guidance set forth the procurement, suspension and debarment, and subrecipient monitoring standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension and debarment, and subrecipient monitoring, it was identified that the Organization does not check for suspension and debarment before signing subawards with subgrantees. Cause: Lack of understanding of all of the specific requirements under the Uniform Guidance that controls were not adequately designed to ensure compliance with all of these requirements. Effect: By not reviewing the suspension and debarment before signing a subaward, the Organization could grant funds to a subrecipient that was suspended or debarred and need to void the subgrant award. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 transactions out of 934 total transactions was selected for testing. Required documentation to satisfy suspension and debarment prior to entering into a subgrant was not performed for all 60 of the items selected. Repeat Finding from Prior Year: No Recommendation: We recommend that management maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to ensure vendors are not suspended or debarred prior to signing the subaward. Views of Responsible Officials: Management agrees with this finding.
2022-003 National Endowment for the Arts Promotion of the Arts Partnership Agreements, 45.025 Allowable Activities and Costs and Period of Performance Material Weakness in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards under assistance listing 45.025 on the Schedule of Expenditures of Federal Awards Criteria: The Organization?s internal control structure should be designed to properly follow the allocation methodology for employees? pay to each grant, in accordance with the policy established by the Organization. Condition: The Organization has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, but the controls did not operate as designed in certain instances. Cause: The Organization has a process for allocating employee wages based on hours worked, however, the retroactive adjustment to employee pay, bonus allocation for one employee, and one pay period for one employee did not follow this process. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of six employees out of 27 was selected for testing, which accounted for $249,558 of $2,212,036 of federal program expenditures. Five of the six employees tested did not have the retroactive pay increases allocated or calculated properly, one employee had an error in bonus allocation, and one employee had an error in the calculation of payroll allocated for one pay period. The errors are estimated to be approximately $5,385 over the sample. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over timesheet allocation to ensure pay is properly allocated to each grant in accordance with the policy established by the Organization. Views of Responsible Officials: Management agrees with this finding.
2022-002 National Endowment for the Arts Promotion of the Arts Partnership Agreements, 45.025 Procurement, Suspension and Debarment, and Subrecipient Monitoring Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 45.025 on the Schedule of Expenditures of Federal Awards Criteria: Uniform Guidance set forth the procurement, suspension and debarment, and subrecipient monitoring standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension and debarment, and subrecipient monitoring, it was identified that the Organization does not check for suspension and debarment before signing subawards with subgrantees. Cause: Lack of understanding of all of the specific requirements under the Uniform Guidance that controls were not adequately designed to ensure compliance with all of these requirements. Effect: By not reviewing the suspension and debarment before signing a subaward, the Organization could grant funds to a subrecipient that was suspended or debarred and need to void the subgrant award. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 transactions out of 934 total transactions was selected for testing. Required documentation to satisfy suspension and debarment prior to entering into a subgrant was not performed for all 60 of the items selected. Repeat Finding from Prior Year: No Recommendation: We recommend that management maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to ensure vendors are not suspended or debarred prior to signing the subaward. Views of Responsible Officials: Management agrees with this finding.
2022-003 National Endowment for the Arts Promotion of the Arts Partnership Agreements, 45.025 Allowable Activities and Costs and Period of Performance Material Weakness in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards under assistance listing 45.025 on the Schedule of Expenditures of Federal Awards Criteria: The Organization?s internal control structure should be designed to properly follow the allocation methodology for employees? pay to each grant, in accordance with the policy established by the Organization. Condition: The Organization has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, but the controls did not operate as designed in certain instances. Cause: The Organization has a process for allocating employee wages based on hours worked, however, the retroactive adjustment to employee pay, bonus allocation for one employee, and one pay period for one employee did not follow this process. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of six employees out of 27 was selected for testing, which accounted for $249,558 of $2,212,036 of federal program expenditures. Five of the six employees tested did not have the retroactive pay increases allocated or calculated properly, one employee had an error in bonus allocation, and one employee had an error in the calculation of payroll allocated for one pay period. The errors are estimated to be approximately $5,385 over the sample. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over timesheet allocation to ensure pay is properly allocated to each grant in accordance with the policy established by the Organization. Views of Responsible Officials: Management agrees with this finding.