Finding 1200772 (2024-002)

Finding 2024-02 National Endowment for Arts Programs: All Significant Deficiency and Noncompliance Over Reporting Repeat Finding: No Condition: The Organization’s single audit report and the data collection form were not completed within nine months after the end of the audit period. Additionally, the organization did not submit the annual report on time. Criteria: Per 2 CFR 200.512: Report Submission. (a) General. (1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. Federal grant regulations require recipients to submit the Federal Financial Report (SF-425) and other required annual reports within the deadlines specified in the Notice of Award, generally no later than 90 days after the end of the reporting period. Cause: For the fiscal year 2024, The Organization did not complete the single audit report and submit the required data collection form within the nine-month timeframe due to delays in compiling necessary financial information and finalizing supporting documentation. The Organization also failed to submit the SF-425 report by the required date. Effect: Failure to submit the reporting package and data collection form within the required timeframe results in non-compliance with the Uniform Guidance reporting requirements. Questioned Costs: None. Recommendation: We recommend that The Organization creates policies and procedures to ensure that audits are started and completed in a timely fashion so the reporting package submission to the Federal government can be made in accordance with Federal guidelines. We also recommend that individuals responsible for administering Federal assistance programs with The Organization receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the Corrective Action Plan. Auditor’s Conclusion: Finding remains as stated.