Finding Text
Federal Program Information Federal Agency: National Endowment for the Arts Award Name(s): Promotion of the Arts Partnership Agreements Assistance Listing Number(s): 45.025 Award Year: 2020 Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Subrecipient Monitoring Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: • Determination of allowable costs • Employee travel • Subrecipient monitoring and management Condition and Context The Organization does not have written policies and procedures in place related to federal awards, as required under the Uniform Guidance. Cause The Organization has not developed written formal documentation of internal controls to encompass all required areas per the Uniform Guidance. Effect or Potential Effect Due to the weaknesses in internal controls noted above, the Organization did not comply with the requirements of the Uniform Guidance over documented policies and procedures. No questioned costs are reported as this requirement is procedural in nature. Recommendation The Organization should develop policies and procedures related to federal awards in order to comply with the Uniform Guidance. Views of Responsible Official Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.