FAC Explorer

Audit 24554

FY End
2022-07-31
Total Expended
$1.45M
Findings
4
Programs
2
Organization: Theater Latte Da (MN)
Year: 2022 Accepted: 2023-03-01
Auditor: Mahoney Ulbrich Christiansen & Russ PA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30402 2022-001 Significant Deficiency - P
30403 2022-001 Significant Deficiency - P
606844 2022-001 Significant Deficiency - P
606845 2022-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
59.075 Shuttered Venue Operators Grant Program $1.44M Yes 1
45.024 Promotion of the Arts_grants to Organizations and Individuals $10,000 - 1

Contacts

Name Title Type
E5JWQZMNMZX7 Elisa Spencer-Kaplan Auditee
6126051771 Marc A. Kotsonas Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Theater Latte Da under programs of the federal government for the year ended July 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Theater Latte Da, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Theater Latte Da.Note 2. Summary of Significant Accounting Policies(1) 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. (2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Theater Latte Da has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-001
2022-001 Lack of Segregation of Duties Condition ? Due to the limited number of employees employed by Theater Latte Da, there is a lack of adequate segregation of duties. Criteria ? Effective internal controls, including an adequate segregation of duties, over the financial reporting process are necessary to prevent misstatements. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Effect ? A misstatement of the financial statements could occur and not be prevented or detected. Cause ? Theater Latte Da has a limited number of staff. Recommendation ? Management and the Board of Theater Latte Da should continue to be active in monitoring financial reports and activities of the organization to ensure oversight to help compensate for the lack of segregation. Auditee's comments and response ? Management and the Board of Theater Latte Da will continue to monitor financial reports and activities of the organization to ensure proper oversight and will accept responsibility for the annual consolidated financial statements prior to their issuance. Responsible party for the corrective action ? Elisa Spencer-Kaplan, Managing Director SECTION III - FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAM AUDIT No matters were noted.
Finding 2022-001
2022-001 Lack of Segregation of Duties Condition ? Due to the limited number of employees employed by Theater Latte Da, there is a lack of adequate segregation of duties. Criteria ? Effective internal controls, including an adequate segregation of duties, over the financial reporting process are necessary to prevent misstatements. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Effect ? A misstatement of the financial statements could occur and not be prevented or detected. Cause ? Theater Latte Da has a limited number of staff. Recommendation ? Management and the Board of Theater Latte Da should continue to be active in monitoring financial reports and activities of the organization to ensure oversight to help compensate for the lack of segregation. Auditee's comments and response ? Management and the Board of Theater Latte Da will continue to monitor financial reports and activities of the organization to ensure proper oversight and will accept responsibility for the annual consolidated financial statements prior to their issuance. Responsible party for the corrective action ? Elisa Spencer-Kaplan, Managing Director SECTION III - FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAM AUDIT No matters were noted.
Finding 2022-001
2022-001 Lack of Segregation of Duties Condition ? Due to the limited number of employees employed by Theater Latte Da, there is a lack of adequate segregation of duties. Criteria ? Effective internal controls, including an adequate segregation of duties, over the financial reporting process are necessary to prevent misstatements. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Effect ? A misstatement of the financial statements could occur and not be prevented or detected. Cause ? Theater Latte Da has a limited number of staff. Recommendation ? Management and the Board of Theater Latte Da should continue to be active in monitoring financial reports and activities of the organization to ensure oversight to help compensate for the lack of segregation. Auditee's comments and response ? Management and the Board of Theater Latte Da will continue to monitor financial reports and activities of the organization to ensure proper oversight and will accept responsibility for the annual consolidated financial statements prior to their issuance. Responsible party for the corrective action ? Elisa Spencer-Kaplan, Managing Director SECTION III - FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAM AUDIT No matters were noted.
Finding 2022-001
2022-001 Lack of Segregation of Duties Condition ? Due to the limited number of employees employed by Theater Latte Da, there is a lack of adequate segregation of duties. Criteria ? Effective internal controls, including an adequate segregation of duties, over the financial reporting process are necessary to prevent misstatements. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Effect ? A misstatement of the financial statements could occur and not be prevented or detected. Cause ? Theater Latte Da has a limited number of staff. Recommendation ? Management and the Board of Theater Latte Da should continue to be active in monitoring financial reports and activities of the organization to ensure oversight to help compensate for the lack of segregation. Auditee's comments and response ? Management and the Board of Theater Latte Da will continue to monitor financial reports and activities of the organization to ensure proper oversight and will accept responsibility for the annual consolidated financial statements prior to their issuance. Responsible party for the corrective action ? Elisa Spencer-Kaplan, Managing Director SECTION III - FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAM AUDIT No matters were noted.