FAC Explorer

Audit 34701

FY End
2022-06-30
Total Expended
$2.74M
Findings
2
Programs
1
Organization: The Laguna Playhouse (CA)
Year: 2022 Accepted: 2023-03-30
Auditor: Haskell & White LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38028 2022-001 Material Weakness - P
614470 2022-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
59.075 Shuttered Venue Operators Grant Program $2.74M - 1

Contacts

Name Title Type
XYR5HH6U46X5 Veltria Roman Auditee
9494940744 Rick Smetanka Auditor
No contacts on file

Notes to SEFA

Accounting Policies: We have audited the Playhouses compliance with the types of compliance requirements described inthe OMB Compliance Supplement that could have a direct and material effect the Playhouses majorfederal program for the year ended June 30, 2022. The Playhouses major federal program is identifiedin the summary of auditors results section of the accompanying schedule of findings and questionedcosts.In our opinion, the Playhouse complied, in all material respects, with the types of compliancerequirements referred to above that could have a direct and material effect on its major federal programfor the year ended June 30, 2022.Basis for Opinion on the Major Federal ProgramWe conducted our audit of compliance in accordance with auditing standards generally accepted inthe United States of America; the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States; and the auditrequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Our responsibilities under those standards and the Uniform Guidance are further described in theAuditors Responsibilities for the Audit of Compliance section of our report.We are required to be independent of the Playhouse and to meet our other ethical responsibilities, inaccordance with relevant ethical requirements relating to our audit. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our opinion on compliance forthe major federal program. Our audit does not provide a legal determination of the Playhousescompliance with the compliance requirements referred to above. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Finding No. 2023-1: Lack of Timely, Accurate and Complete Account Analysis and Reconciliation Type of Finding: Material Weakness Material Weakness Criteria: AICPA AU-C 265.07 defines a material weakness as ?a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the entity?s financial statements will not be prevented, or detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is either reasonably possible or probable as defined as follows: reasonably possible - the chance of the future event or events occurring is more than remote but less than likely; probable - the future event or events are likely to occur.? The Committee of Sponsoring Organizations of the Treadway Commission (COSO) in the Internal Control ? Integrated Framework (2013 Framework) defined internal control as ?? a process, effected by an entity?s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance. Condition: Cash accounts were not consistently reconciled; accounts receivable ledgers contained inaccurate activities; depreciation expenses were incorrectly posted; capitalizable assets were improperly expensed; accounts payable and accrued expenses were not complete at fiscal year-end; net assets did not properly roll-forward from the prior fiscal year. Cause: Internal controls were inadequate over the above-mentioned processes. Effect: Numerous audit adjusting entries were required to present the Playhouse?s June 30, 2022 financial statements in accordance with generally accepted accounting principles in the United States. Repeat Finding from Prior Year: Not applicable.
Finding 2022-001
Finding No. 2023-1: Lack of Timely, Accurate and Complete Account Analysis and Reconciliation Type of Finding: Material Weakness Material Weakness Criteria: AICPA AU-C 265.07 defines a material weakness as ?a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the entity?s financial statements will not be prevented, or detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is either reasonably possible or probable as defined as follows: reasonably possible - the chance of the future event or events occurring is more than remote but less than likely; probable - the future event or events are likely to occur.? The Committee of Sponsoring Organizations of the Treadway Commission (COSO) in the Internal Control ? Integrated Framework (2013 Framework) defined internal control as ?? a process, effected by an entity?s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance. Condition: Cash accounts were not consistently reconciled; accounts receivable ledgers contained inaccurate activities; depreciation expenses were incorrectly posted; capitalizable assets were improperly expensed; accounts payable and accrued expenses were not complete at fiscal year-end; net assets did not properly roll-forward from the prior fiscal year. Cause: Internal controls were inadequate over the above-mentioned processes. Effect: Numerous audit adjusting entries were required to present the Playhouse?s June 30, 2022 financial statements in accordance with generally accepted accounting principles in the United States. Repeat Finding from Prior Year: Not applicable.