Finding 22106 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-08-22
Audit: 23437
Organization: Theatre for Children, Inc. (CA)

AI Summary

  • Core Issue: Incomplete payroll documentation, including employee pay rates and timesheets, does not meet federal requirements.
  • Impacted Requirements: Costs charged to federal programs must be adequately documented as per CFR 200.403 (h).
  • Recommended Follow-Up: Strengthen payroll processing procedures to ensure compliance with Uniform Guidance.

Finding Text

Finding 2022-003: Payroll Records Documentation Assistance Listing Number and Title: 59.075 Shuttered Venue Operators Grant Program Federal Agency: Small Business Administration Federal Award Number: SBAHQ21SV004136 Grant Period: 7/12/2021 through 6/30/2022 Criteria Costs charged to U.S. Federal Government programs must adequately documented (CFR 200.403 (h)). Conditions Documentation of payroll expenses were not always complete, including documentation of employee payrates, timesheets, and the distribution of costs to general ledger accounts. Cause The Organization?s procedures surrounding payroll tend to be less formal than the rules of the Uniform Guidance stipulate. Effect The risk of incurring costs not allowed by federal grants is moderate. Context The fiscal year ended June 30, 2022 was the first year the Organization was required to have an audit conducted under the rules of the Uniform Guidance. Recommendation Payroll processing procedures should be strengthened.

Corrective Action Plan

Finding 2022-003: Payroll Records Documentation Organization?s Response: We concur Views of Responsible Officials and Corrective Action: Additional payroll documentation procedures will be initiated as future Federal funding is received. Name of Responsible Official: Leah Ladd Projected Implementation Date: August 2023

Categories

No categories assigned yet.

Other Findings in this Audit

  • 22104 2022-001
    Material Weakness
  • 22105 2022-002
    Significant Deficiency
  • 22107 2022-004
    Significant Deficiency
  • 22108 2022-005
    Significant Deficiency
  • 598546 2022-001
    Material Weakness
  • 598547 2022-002
    Significant Deficiency
  • 598548 2022-003
    Significant Deficiency
  • 598549 2022-004
    Significant Deficiency
  • 598550 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.075 Shuttered Venue Operators Grant Program $1.60M
59.008 Disaster Assistance Loans $513,115