FAC Explorer

Audit 28932

FY End
2022-06-30
Total Expended
$854,889
Findings
2
Programs
1
Organization: The Tower Theatre Foundation, Inc. (OR)
Year: 2022 Accepted: 2022-12-07
Auditor: Price Fronk & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
28849 2022-001 Significant Deficiency - ABH
605291 2022-001 Significant Deficiency - ABH

Programs

ALN Program Spent Major Findings
59.075 Shuttered Venue Operators Grant Program $854,889 Yes 1

Contacts

Name Title Type
G32GMYUMDLD7 Kevin Thurston Auditee
5413232871 Ben Miller Auditor
No contacts on file

Notes to SEFA

Title: Note 3: Federal Loan Programs Accounting Policies: The accompanying schedule of federal awards (the Schedule) includes the federal award activity of the Tower Theatre Foundation, Inc. (the Theatre) 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 Title 2 United States Code of Federal Regulations 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 the Theatre it is not intended to and does not present the financial position, change in net assets or cash flows of the Theatre. 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. There were no amounts of loans or loan guarantees related to federal awards outstanding at year end.

Finding Details

Finding 2022-001
Criteria: 2 CFR 200.303 of the Uniform Guidance requires recipients of Federal funds to establish and maintain effective internal control over Federal awards to provide reasonable assurance that the recipient complies with Federal statutes, regulations and the terms of the Federal award. Condition and Context: For the year ended June 30, 2022, the Theatre failed to maintain adequate segregation of duties within the accounting function. We consider segregation of duties to be an integral part of effective internal controls, and consider this deficiency to rise to the level of significant deficiency. Cause: The Theatre lacks a sufficient number of accounting personnel to properly segregate accounting duties, particularly within the cash receipts and cash disbursements transaction cycles. Effect or Potential Effect: Inadequate segregation of duties within the accounting function creates an environment more susceptible to fraud, and also increases the likelihood of human error in the processing of transactions as there are fewer reviews of transactional data. Recommendation: We recommend that the Theatre continue to consider the possibility of adding an additional employee within the accounting function, or assign enough accounting duties to an existing employee in another area of the organization to achieve adequate segregation of duties within the accounting function.
Finding 2022-001
Criteria: 2 CFR 200.303 of the Uniform Guidance requires recipients of Federal funds to establish and maintain effective internal control over Federal awards to provide reasonable assurance that the recipient complies with Federal statutes, regulations and the terms of the Federal award. Condition and Context: For the year ended June 30, 2022, the Theatre failed to maintain adequate segregation of duties within the accounting function. We consider segregation of duties to be an integral part of effective internal controls, and consider this deficiency to rise to the level of significant deficiency. Cause: The Theatre lacks a sufficient number of accounting personnel to properly segregate accounting duties, particularly within the cash receipts and cash disbursements transaction cycles. Effect or Potential Effect: Inadequate segregation of duties within the accounting function creates an environment more susceptible to fraud, and also increases the likelihood of human error in the processing of transactions as there are fewer reviews of transactional data. Recommendation: We recommend that the Theatre continue to consider the possibility of adding an additional employee within the accounting function, or assign enough accounting duties to an existing employee in another area of the organization to achieve adequate segregation of duties within the accounting function.