FAC Explorer

Audit 54984

FY End
2022-06-30
Total Expended
$1.34M
Findings
2
Programs
1
Organization: National Museum of African American Music (TN)
Year: 2022 Accepted: 2023-01-30
Auditor: Cherry Bekaert LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59178 2022-002 Significant Deficiency - AB
635620 2022-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.34M Yes 1

Contacts

Name Title Type
K72BCJKGYNC3 James Munch Auditee
6153018724 Jeff Fox Auditor
No contacts on file

Notes to SEFA

Title: Note 3-Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the award activity of the National Museum of African American Music ("NMAAM") under programs of the federal government for the year ended June 30, 2022. 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 NMAAM, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of NMAAM. 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 listed as to reimbursement. De Minimis Rate Used: N Rate Explanation: NMAAM did not elect to use the 10% de minimis cost rate allowed under the Uniform Guidance. NMAAM did not have expenditures to subrecipients during the fiscal year.
Title: Note 4-Noncash awards Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the award activity of the National Museum of African American Music ("NMAAM") under programs of the federal government for the year ended June 30, 2022. 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 NMAAM, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of NMAAM. 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 listed as to reimbursement. De Minimis Rate Used: N Rate Explanation: NMAAM did not elect to use the 10% de minimis cost rate allowed under the Uniform Guidance. NMAAM did not receive noncash federal awards during the year ended June 30, 2022.
Title: Note 5-Contingencies Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the award activity of the National Museum of African American Music ("NMAAM") under programs of the federal government for the year ended June 30, 2022. 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 NMAAM, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of NMAAM. 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 listed as to reimbursement. De Minimis Rate Used: N Rate Explanation: NMAAM did not elect to use the 10% de minimis cost rate allowed under the Uniform Guidance. These programs are subject to financial and compliance audits by grantor agencies. The amount, if any, of expenditures that may be disallowed by the grantor agencies cannot be determined at this time, although NMAAM expects such amounts, if any, to be immaterial.

Finding Details

Finding 2022-002
Finding 2022-002 - Significant Deficiency over Internal Controls over Cash Disbursements for Coronavirus State and Local Fiscal Recovery Funds Assistance Listing #21.027 Criteria: National Museum of African American Music ("NMAAM") is responsible for establishing controls and procedures to ensure internal controls are adequate and being properly implemented. Condition: Established controls related to cash disbursements include a requirement that vendor invoices be reviewed and approved by department heads prior to payment by the accounting department. Such was not followed for the entire year, with certain vendor payments being made without review and approval by department heads. Cause: NMAAM experienced a change in its accounting system and complete turnover in its accounting staff. Effect: The lack of segregation of duties between vendor payment approval and check processing and issuance allows for the possibility of intentional or unintentional unauthorized disbursements. Recommendation: NMAAM management should require the established controls be followed in all circumstances. Management?s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed.
Finding 2022-002
Finding 2022-002 - Significant Deficiency over Internal Controls over Cash Disbursements for Coronavirus State and Local Fiscal Recovery Funds Assistance Listing #21.027 Criteria: National Museum of African American Music ("NMAAM") is responsible for establishing controls and procedures to ensure internal controls are adequate and being properly implemented. Condition: Established controls related to cash disbursements include a requirement that vendor invoices be reviewed and approved by department heads prior to payment by the accounting department. Such was not followed for the entire year, with certain vendor payments being made without review and approval by department heads. Cause: NMAAM experienced a change in its accounting system and complete turnover in its accounting staff. Effect: The lack of segregation of duties between vendor payment approval and check processing and issuance allows for the possibility of intentional or unintentional unauthorized disbursements. Recommendation: NMAAM management should require the established controls be followed in all circumstances. Management?s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed.