Finding 11520 (2022-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2024-02-02

Audit: 15360

Organization: La Jolla Music Society (CA)

Auditor: Moss Adams LLP

AI Summary

Core Issue: LJMS failed to submit its single audit on time, violating 45 CFR 75.501 requirements.
Impacted Requirements: The organization did not meet the deadline for audit submission, which is crucial for compliance.
Recommended Follow-Up: Ensure LJMS conducts and submits a single audit each year it qualifies under 45 CFR 75.501.

Finding Text

Finding 2022-001 – Reporting – Significant Deficiency in Internal Controls over Compliance (See Schedule of Findings and Questioned Costs for table). Criteria – 45 CFR 75.501 requires a non-Federal entity that expends $750,000 or more during the non_x0002_Federal entity’s fiscal year in Federal awards must have a single or program-specific audit conducted for that year. Audits must be completed and submitted within 30 days after receipt of the auditor’s report, or nine months after the end of the audit period, whichever is earlier. Condition – LJMS did not submit a single audit in a timely manner to be following the audit requirement under 45 CFR 75.501. Context – LJMS did not meet its reporting deadline. Questioned Costs – None. Cause – LJMS was unable to meet the deadline due to certain delays in gathering the necessary documentation to complete audit process. Effect – Audit was not performed and submitted in a timely manner. LJMS has not met the reporting requirements under 45 CFR 75.501. Repeat Finding – This is not a repeat finding. Recommendation – We recommend that LJMS obtain a single audit for each year that it meets the audit requirement of 45 CFR 75.501. Management’s Response – LJMS will obtain single audits each year that it meets the audit requirement of 45 CFR 75.501.

Corrective Action Plan

Corrective Action Plan for La Jolla Music Society Audit Finding 2022-001 Finding No. 2022-001 – LJMS did not have policies in place to ensure the single audit was submitted timely (See Corrective Action Plan for La Jolla Music Society) Criteria – 45 CFR 75.501 requires a non-Federal entity that expends $750,000 or more during the non_x0002_Federal entity’s fiscal year in Federal awards must have a single or program-specific audit conducted for that year. Audits must be completed and submitted within 30 days after receipt of the auditor’s report, or 9 months after the end of the audit period, whichever is earlier. Condition/Context – LJMS did not submit a single audit in a timely manner to be in compliance with the audit requirement under 45 CFR 75.501. LJMS did not meet its reporting deadline. Cause – LJMS was unable to meet the deadline due to certain delays in becoming aware of the compliance requirement. Effect – Audit was not performed and submitted in a timely manner. LJMS has not met the reporting requirements under 45 CFR 75.501. Recommendation – We recommend that LJMS obtain a single audit for each year that it meets the audit requirement of 45 CFR 75.501. Corrective Action Plan- LJMS will identify grants with federal funding and evaluate whether or not a single audit is required. When an audit is required they will plan to complete the audit within the deadline. The September 30, 2022 audit and Data Collection Form will be filed within 30 days of issuance of the report. Contact Person: Karin Burns, Director of Finance Anticipated Completion: February 28, 2024

Other Findings in this Audit

587962 2022-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
59.075	Covid-19 Shuttered Venue Operators Grant Program	$1.48M