Audit 39274

2022-001 National Endowment for the Arts Promotion of the Arts Grants to Organizations and Individuals ? 45.024 Award Number - 1891454-22-C-21 Criteria or Specific Requirement ? Reporting The Federal Funding Accountability and Transparency Act (FFATA) was signed on September 26, 2006. The FFATA legislation requires information on federal awards to be made available to the public via a single searchable website. The FFATA Subaward Reporting System (FSRS) is the reporting tool Federal prime awardees (i.e., prime contractors and prime grants recipients) use to capture and report subaward and executive compensation data regarding their first-tier subawards to meet the FFATA reporting requirements. Condition ? M-AAA has awarded grants to subrecipients that are required to be reported in the FSRS system. Questioned Costs ? None noted. Context ? M-AAA executed nine subawards in fiscal year 2022 that would require FFATA reporting. During our test work, we selected one award for testing and noted that M-AAA did not complete the reporting requirement timely. The sample was not intended to be, and was not a statistically valid sample. Effect ? M-AAA did not comply with the FFATA reporting requirement. Cause ? Lack of controls to ensure that reporting requirements are met. Identification as a Repeat Finding ? Not applicable. Recommendation ? We recommend M-AAA report the required information within the FSRS system. Views of Responsible Officials and Planned Corrective Actions ? M-AAA will implement procedures to ensure timely and accurate FSRS reporting.

2022-002 National Endowment for the Arts Promotion of the Arts Grants to Organizations and Individuals ? 45.024 Award Number - 1891454-22-C-21 Criteria or Specific Requirement ? Cash Management 2 CFR 200.302(b) of the compliance supplement requires organizations receiving federal funds to establish controls and procedures that would minimize the amount of time between drawdowns and disbursement of the funds. The NEA terms and conditions require requests for advanced payments to be limited to immediate cash needs and are not expected to exceed anticipated expenditures for a 30 day period. Condition ? M-AAA requested an advance payment in May 2022 for anticipated expenditures and did not expend all funding within the 30 day period. Questioned Costs ? None noted. Context ? During our test work, we noted that M-AAA had a refundable advance recorded at June 30, 2022. We selected four of seven invoices included in the refundable advance and noted that in three of the four selections payment was not disbursed within the 30 day period. The sample was not intended to be, and was not a statistically valid sample. Effect ? M-AAA did not comply with the 30 day period required for advanced payments. Cause ? M-AAA was waiting for additional information from subrecipients or vendors prior to disbursing funding. Identification as a Repeat Finding ? Not applicable. Recommendation ? We recommend M-AAA only request advance payments up to the amount they are able to disburse within the required time in order to minimize the time elapsing between the receipt and disbursement of federal funds. Views of Responsible Officials and Planned Corrective Actions ? M-AAA will implement procedures to minimize the time elapsing between the receipt and disbursement of federal funds.

2022-001 National Endowment for the Arts Promotion of the Arts Grants to Organizations and Individuals ? 45.024 Award Number - 1891454-22-C-21 Criteria or Specific Requirement ? Reporting The Federal Funding Accountability and Transparency Act (FFATA) was signed on September 26, 2006. The FFATA legislation requires information on federal awards to be made available to the public via a single searchable website. The FFATA Subaward Reporting System (FSRS) is the reporting tool Federal prime awardees (i.e., prime contractors and prime grants recipients) use to capture and report subaward and executive compensation data regarding their first-tier subawards to meet the FFATA reporting requirements. Condition ? M-AAA has awarded grants to subrecipients that are required to be reported in the FSRS system. Questioned Costs ? None noted. Context ? M-AAA executed nine subawards in fiscal year 2022 that would require FFATA reporting. During our test work, we selected one award for testing and noted that M-AAA did not complete the reporting requirement timely. The sample was not intended to be, and was not a statistically valid sample. Effect ? M-AAA did not comply with the FFATA reporting requirement. Cause ? Lack of controls to ensure that reporting requirements are met. Identification as a Repeat Finding ? Not applicable. Recommendation ? We recommend M-AAA report the required information within the FSRS system. Views of Responsible Officials and Planned Corrective Actions ? M-AAA will implement procedures to ensure timely and accurate FSRS reporting.

2022-002 National Endowment for the Arts Promotion of the Arts Grants to Organizations and Individuals ? 45.024 Award Number - 1891454-22-C-21 Criteria or Specific Requirement ? Cash Management 2 CFR 200.302(b) of the compliance supplement requires organizations receiving federal funds to establish controls and procedures that would minimize the amount of time between drawdowns and disbursement of the funds. The NEA terms and conditions require requests for advanced payments to be limited to immediate cash needs and are not expected to exceed anticipated expenditures for a 30 day period. Condition ? M-AAA requested an advance payment in May 2022 for anticipated expenditures and did not expend all funding within the 30 day period. Questioned Costs ? None noted. Context ? During our test work, we noted that M-AAA had a refundable advance recorded at June 30, 2022. We selected four of seven invoices included in the refundable advance and noted that in three of the four selections payment was not disbursed within the 30 day period. The sample was not intended to be, and was not a statistically valid sample. Effect ? M-AAA did not comply with the 30 day period required for advanced payments. Cause ? M-AAA was waiting for additional information from subrecipients or vendors prior to disbursing funding. Identification as a Repeat Finding ? Not applicable. Recommendation ? We recommend M-AAA only request advance payments up to the amount they are able to disburse within the required time in order to minimize the time elapsing between the receipt and disbursement of federal funds. Views of Responsible Officials and Planned Corrective Actions ? M-AAA will implement procedures to minimize the time elapsing between the receipt and disbursement of federal funds.