FAC Explorer

Audit 46472

FY End
2022-10-31
Total Expended
$1.42M
Findings
2
Programs
1
Organization: Indiana Humanities Council, Inc. (IN)
Year: 2022 Accepted: 2023-03-08
Auditor: Blue & CO LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
39067 2022-001 Significant Deficiency - G
615509 2022-001 Significant Deficiency - G

Programs

ALN Program Spent Major Findings
45.129 Promotion of the Humanities_federal/state Partnership $328,114 Yes 0

Contacts

Name Title Type
MY76DCW45425 Tim Murphy Auditee
3173401713 Doug Hasler Auditor
No contacts on file

Notes to SEFA

Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Note 1 - Basis of Presentation The above Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Indiana Humanities Council, Inc. (IH) for the year ended October 31, 2022 and is presented on the accrual basis. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. 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 IH, it is not intended to and does not present the financial position, changes in net assets, or cash flows of IH. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. IH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 3 - Matching Compliance Accounting Policies: Note 1 - Basis of Presentation The above Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Indiana Humanities Council, Inc. (IH) for the year ended October 31, 2022 and is presented on the accrual basis. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. 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 IH, it is not intended to and does not present the financial position, changes in net assets, or cash flows of IH. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The major program listed above includes a dollar-for-dollar matching requirement. National Endowment for the Humanities (NEH) regulations limit the amount of match allowed per grantee. However, in practice, NEH has accepted an unlimited match from regrantee (subrecipient) costs. IH's compliance regarding matching is in compliance with the accepted practice of the NEH.

Finding Details

Finding 2022-001
Criteria or specific requirement: Indiana Humanities (IH) is required to match outright National Endowment for the Humanities (NEH) funds dollar for dollar. Condition: IH grant management system contained errors that led to the misaccumulation of matching dollars reported to the NEH. Context: Matching dollars of up to $267,809 were included in the grant management system for grants that were open at close out, either because the grant was withdrawn, or IH personnel did not follow up with the grantee to determine if the final grant information was accurate and complete. Effect: Matching dollars reported to the NEH from the grant management system was over-reported. Excluding these $267,809 in matching dollars, IH still met the dollar for dollar matching requirement. Cause: IH has a significant deficiency in internal controls surrounding the grant management system related to monitoring of open grants. Recommendation: We recommend that controls surrounding the accumulation of grant information within the grant management system be established to provide accurate accumulation of matching dollars including monitoring of this information and follow up with grantees when necessary. Management's Response: "IH is in the process of implementing a new grant database, which includes features such as automated communication tools with grant recipients. One of the challenges that the grants management team has is consistently and timely communicating deadlines and expectations to our recipients. By sending automated reminders ? triggered by specific events such as the end of a grant year, completion date of the proposed project, etc., we can hopefully obtain more timely information from grant recipients. As well, the system will be able to trigger reports to staff of grantees who are delinquent in their reporting such that follow up can occur. As staff receive reports from grantees, they will examine the final report in light of the application that was approved, and request information when there are significant variances between estimated match indicated on the application, and match reported on the final report. Since match is necessary for IH to meet its obligations with the NEH, we want to ensure our recipients are also following through on their obligations. From an IH reporting perspective, on future reports to the NEH, care will be taken to exclude reporting any grants that have not been closed out. This is simply a matter of selecting only closed grants during the current reporting cycle."
Finding 2022-001
Criteria or specific requirement: Indiana Humanities (IH) is required to match outright National Endowment for the Humanities (NEH) funds dollar for dollar. Condition: IH grant management system contained errors that led to the misaccumulation of matching dollars reported to the NEH. Context: Matching dollars of up to $267,809 were included in the grant management system for grants that were open at close out, either because the grant was withdrawn, or IH personnel did not follow up with the grantee to determine if the final grant information was accurate and complete. Effect: Matching dollars reported to the NEH from the grant management system was over-reported. Excluding these $267,809 in matching dollars, IH still met the dollar for dollar matching requirement. Cause: IH has a significant deficiency in internal controls surrounding the grant management system related to monitoring of open grants. Recommendation: We recommend that controls surrounding the accumulation of grant information within the grant management system be established to provide accurate accumulation of matching dollars including monitoring of this information and follow up with grantees when necessary. Management's Response: "IH is in the process of implementing a new grant database, which includes features such as automated communication tools with grant recipients. One of the challenges that the grants management team has is consistently and timely communicating deadlines and expectations to our recipients. By sending automated reminders ? triggered by specific events such as the end of a grant year, completion date of the proposed project, etc., we can hopefully obtain more timely information from grant recipients. As well, the system will be able to trigger reports to staff of grantees who are delinquent in their reporting such that follow up can occur. As staff receive reports from grantees, they will examine the final report in light of the application that was approved, and request information when there are significant variances between estimated match indicated on the application, and match reported on the final report. Since match is necessary for IH to meet its obligations with the NEH, we want to ensure our recipients are also following through on their obligations. From an IH reporting perspective, on future reports to the NEH, care will be taken to exclude reporting any grants that have not been closed out. This is simply a matter of selecting only closed grants during the current reporting cycle."