FAC Explorer

Audit 321060

FY End
2023-12-31
Total Expended
$905,184
Findings
2
Programs
3
Organization: National Council for the Traditional Arts, Inc. (MD)
Year: 2023 Accepted: 2024-09-25
Auditor: Gelman Rosenberg & Freedman

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498309 2023-002 Significant Deficiency - P
1074751 2023-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
45.024 Promotion of the Arts Grants to Organizations and Individuals $683,184 Yes 1
15.954 National Park Service Conservation, Protection, Outreach, and Education $148,000 - 0
15.946 Cultural Resources Management $74,000 - 0

Contacts

Name Title Type
R2NBFVKNX653 Blaine Waide Auditee
3015650654 Lindsay Dean Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: 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 represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. NCTA has elected to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of NCTA under programs of the Federal Government for the year ended December 31, 2023. Information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedule presents only a selected portion of the operations of NCTA; accordingly, it is not intended to and does not present the financial position, changes in net assets or cash flows of NCTA.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: 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 represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. NCTA has elected to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. 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 represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. NCTA has elected to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance.

Finding Details

Finding 2023-002
Finding 2023-002 Underlying Accounting Records Supporting Schedule of Federal Expenditures (SEFA) Information on the Federal Programs: 45.024 Criteria or Specific Requirement: The SEFA must be supported by underlying accounting records. Condition: We noted that for two grants within the major program, the expenditures reported on the SEFA were not able to be specifically identified within the accounting system. NCTA was tracking the project using the classes in QuickBooks, but the expenses within the class exceed the amount charged on the SEFA because not all of the expenses were Federal. Cause: The classes within the accounting system used to track the two awards included some expenses which are not charged to the Federal Government. Effect or Potential Effect: If the SEFA cannot be tied out to the underlying accounting records, errors on the SEFA could occur and not be discovered in a timely manner. It is also difficult to determine allowability of expenditures when not possible to identify which items are being charged to the government. Questioned Costs: Undetermined Context: NCTA creates detailed invoices for submission to the Federal Government, but it is not possible to identify only the items charged within the general ledger detail. Identification as a Repeat Finding: Not applicable Recommendation: We recommend that NCTA ensure that it is possible to generate a report providing the detail (general ledger) of transactions that are being charged to and reimbursed by the Federal Government for each award.
Finding 2023-002
Finding 2023-002 Underlying Accounting Records Supporting Schedule of Federal Expenditures (SEFA) Information on the Federal Programs: 45.024 Criteria or Specific Requirement: The SEFA must be supported by underlying accounting records. Condition: We noted that for two grants within the major program, the expenditures reported on the SEFA were not able to be specifically identified within the accounting system. NCTA was tracking the project using the classes in QuickBooks, but the expenses within the class exceed the amount charged on the SEFA because not all of the expenses were Federal. Cause: The classes within the accounting system used to track the two awards included some expenses which are not charged to the Federal Government. Effect or Potential Effect: If the SEFA cannot be tied out to the underlying accounting records, errors on the SEFA could occur and not be discovered in a timely manner. It is also difficult to determine allowability of expenditures when not possible to identify which items are being charged to the government. Questioned Costs: Undetermined Context: NCTA creates detailed invoices for submission to the Federal Government, but it is not possible to identify only the items charged within the general ledger detail. Identification as a Repeat Finding: Not applicable Recommendation: We recommend that NCTA ensure that it is possible to generate a report providing the detail (general ledger) of transactions that are being charged to and reimbursed by the Federal Government for each award.