Audit 26909

Finding 2022-001 Significant Deficiency Small Business Administration Assistance Listing No. 59.075 Shuttered Venue Operators Grant Criteria The Government Accountability Office ? Standards for Internal Control in the Federal Government principle 10 for Design Control Activities states: ?management designs control activities so that all transactions are completely and accurately recorded? Management clearly documents internal control? in a manner that allows the documentation to be readily available for examination. Condition Daily time calculations are not reviewed for accuracy. Cause Internal controls over payroll do not include a step for recalculating the daily hours worked. Potential Effect and Context Employees could be paid for an incorrect number of hours. Recommendation We recommend the financial accountants include a step in the control process to recalculate hours reported on time sheets and document this review. View of Responsible Officials This grant provided funds to support the ongoing operations of the Theatre during the midst of the COVID-19 Pandemic. Because of various state and federal restrictions relating to gatherings, the Theatre restructured office locations for various staff and processes as needed during the Pandemic. During this time It was difficult to maintain controls at the same level as pre-pandemic. While there was no compliance findings related to this matter, we continually review our internal control processes to strengthen them. The Theatre will review the internal control processes relating to payroll and include a step to recalculate hours reported on time sheets and add documentation. In addition, all timecards will be submitted to the Executive Director and approved before payment.

Finding 2022-001 Significant Deficiency Small Business Administration Assistance Listing No. 59.075 Shuttered Venue Operators Grant Criteria The Government Accountability Office ? Standards for Internal Control in the Federal Government principle 10 for Design Control Activities states: ?management designs control activities so that all transactions are completely and accurately recorded? Management clearly documents internal control? in a manner that allows the documentation to be readily available for examination. Condition Daily time calculations are not reviewed for accuracy. Cause Internal controls over payroll do not include a step for recalculating the daily hours worked. Potential Effect and Context Employees could be paid for an incorrect number of hours. Recommendation We recommend the financial accountants include a step in the control process to recalculate hours reported on time sheets and document this review. View of Responsible Officials This grant provided funds to support the ongoing operations of the Theatre during the midst of the COVID-19 Pandemic. Because of various state and federal restrictions relating to gatherings, the Theatre restructured office locations for various staff and processes as needed during the Pandemic. During this time It was difficult to maintain controls at the same level as pre-pandemic. While there was no compliance findings related to this matter, we continually review our internal control processes to strengthen them. The Theatre will review the internal control processes relating to payroll and include a step to recalculate hours reported on time sheets and add documentation. In addition, all timecards will be submitted to the Executive Director and approved before payment.