Audit 348149

Significant Deficiency over Internal Control over Compliance, Noncompliance – Timely Submission to Federal Audit Clearinghouse Criteria 2 CFR 200.512, Report Submission, establishes that the audit shall be completed and the data collection form and reporting package submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days after receive of the auditor’s report or 9 months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit, and any extensions granted by the Office of Management and Budget. Condition PSA did not comply with the required submission date of the data collection form and reporting package to the FAC for the year ended September 31, 2022. Cause Due to the complex nature of the federal regulations associated with the Shuttered Venue Operators Grant (SVOG) and the evolving guidance, PSA was not aware that an audit was required in accordance with 2 CFR 200.512. Effect The audit required by 2 CFR 200.512 was not completed timely. Recommendation It is recommended that PSA perform research and establish a process for evaluating Federal grant audit requirements to ensure compliance, including timely completion and submission to the FAC for any future Federal grant awards. Questioned Costs Not applicable.

Significant Deficiency over Internal Control over Compliance, Noncompliance – Error in Reporting of Expenditures Criteria 2 CFR 200.303 of the Uniform Guidance requires Federal award recipients to establish and maintain effective internal control over Federal awards to provide reasonable assurance that the recipient’s expenditures of federal awards have been tracked and reported appropriately. Condition In one instance, PSA included a payroll accrual for musician wages as well as payroll expenditures for the same pay period, resulting in an overstatement of musician payroll expenses reported. Cause A detailed reconciliation and review of grant expenditures was not sufficiently performed to detect the error. Effect The payroll accrual coded to the grant resulted in an overstatement of the specific payroll costs reported, however, PSA’s allowable costs for the year ended September 30, 2022 exceeded the remaining grant balance by more than the amount of the mistake, therefore total Federal expenditures reported for the SVOG grant is accurate. Recommendation It is recommended that PSA establish reconciliation and review controls to detect any errors or miscoding of expenditures to Federal award programs. Questioned Costs Not applicable.

Significant Deficiency over Internal Control over Compliance, Noncompliance – Timely Submission to Federal Audit Clearinghouse Criteria 2 CFR 200.512, Report Submission, establishes that the audit shall be completed and the data collection form and reporting package submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days after receive of the auditor’s report or 9 months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit, and any extensions granted by the Office of Management and Budget. Condition PSA did not comply with the required submission date of the data collection form and reporting package to the FAC for the year ended September 31, 2022. Cause Due to the complex nature of the federal regulations associated with the Shuttered Venue Operators Grant (SVOG) and the evolving guidance, PSA was not aware that an audit was required in accordance with 2 CFR 200.512. Effect The audit required by 2 CFR 200.512 was not completed timely. Recommendation It is recommended that PSA perform research and establish a process for evaluating Federal grant audit requirements to ensure compliance, including timely completion and submission to the FAC for any future Federal grant awards. Questioned Costs Not applicable.

Significant Deficiency over Internal Control over Compliance, Noncompliance – Error in Reporting of Expenditures Criteria 2 CFR 200.303 of the Uniform Guidance requires Federal award recipients to establish and maintain effective internal control over Federal awards to provide reasonable assurance that the recipient’s expenditures of federal awards have been tracked and reported appropriately. Condition In one instance, PSA included a payroll accrual for musician wages as well as payroll expenditures for the same pay period, resulting in an overstatement of musician payroll expenses reported. Cause A detailed reconciliation and review of grant expenditures was not sufficiently performed to detect the error. Effect The payroll accrual coded to the grant resulted in an overstatement of the specific payroll costs reported, however, PSA’s allowable costs for the year ended September 30, 2022 exceeded the remaining grant balance by more than the amount of the mistake, therefore total Federal expenditures reported for the SVOG grant is accurate. Recommendation It is recommended that PSA establish reconciliation and review controls to detect any errors or miscoding of expenditures to Federal award programs. Questioned Costs Not applicable.