Finding Text
Finding No.: 2024-001 Federal Financial Reports
Federal Agency: National Endowment for the Humanities
Federal Assistance Listing No.: 45.129
Program: Promotion of the Humanities-Federal State Partnership
Requirement: Reporting
Type of Finding: Significant Deficiency
Federal award no. and year: SO-283113-22
Criteria: 2 CFR 200.328 states that recipients of federal awards must submit financial reports that include
OMB-approved government-wide data elements which consist of the Federal Financial Report, as required
by the federal award.
The Federal Financial Report Instructions provided by the federal awarding agency include instructions for
each line item reported in the Federal Financial Report.
Condition: The amount of the federal share of expenditures line item reported in one of the Federal
Financial Reports submitted in the current year was not reported in accordance with the Federal Financial
Report Instructions.
Context: We selected all four of the Federal Financial Reports submitted during the current year and noted
that for one of the Federal Financial Reports submitted during the year, the amount reported in the federal
share of expenditures line item was under reported by approximately $47,000.
Cause: The Council has a process in place to support the accurate preparation and review of the Federal
Financial Reports, however the Council was not diligent in following this policy.
Effect: Failure to properly adhere to the processes in place over the preparation and review of the Federal
Financial Reports resulted in an error to one of the submitted Federal Financial Reports.
Questioned costs: None
Identification of a repeat finding: N/A
Recommendations: The Council should diligently follow its existing policy.
Views of Responsible Official(s) and Planned Corrective Action: Management concurs with the finding. The report found lacking was reviewed by the Executive Director, and the error was based on a difference between cash and accrual accounting. Management will review federal financial reports with contracted accountants and retrieve source documents before submitting. Management will also review scope of contracted accounting services to ensure it includes review of all NEH reports.