Finding 1056247 (2023-002)

2023-002 ALLOWABILITY Federal Program Information: Federal Agency and Program Name Federal Assistance Listing Number National Endowment for the Humanities Promotion of the Humanities Federal/State Partnership Grant Number: SO-289836-23 45.129 Criteria: 2 CFR 200.303 requires that a non-federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Condition: For two of the 40 transactions selected for testing, there was no documentation of review and approval of the expenditure for allowability and payment. Questioned Costs: None Context: Total federal expenditures for the Promotion of the Humanities Federal/State Partnership program were $1,019,055 for the year ended October 31, 2023. Cause: Internal controls were not operating effectively to ensure the allowability of expenditures. Effect: Expenditures could be made that are not allowable. Identification as a Repeat Finding: Prior Year Finding 2022-002 Recommendation: We recommend that the Council implement controls to ensure that expenditures are properly reviewed and approved before being charged to a federal award. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.