FAC Explorer

Finding 22447 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-04-27
Audit: 22373
Organization: Northwest Connecticut Association for the Arts, Inc. (CT)
Auditor: Marcum LLP

AI Summary

  • Core Issue: The Northwest Connecticut Association for the Arts submitted its federal audit report late, missing the March 31, 2023 deadline.
  • Impacted Requirements: The delay in the audit affects funders' ability to make informed decisions about the organization's programs.
  • Recommended Follow-Up: Management should enhance staffing in the finance department to ensure timely completion of accounting records and audits.

Finding Text

Finding 2022-002 ? Material Weakness ? Late Submission of Federal Single Audit Report Criteria - Northwest Connecticut Association for the Arts, Inc was required to have its Uniform Guidance audit completed and uploaded to the federal clearinghouse website by March 31, 2023. The audit was not completed and uploaded until after this date. Cause - Due to employee staffing difficulties in the finance and accounting department predominantly caused by the pandemic, the accounting records were not completed in a timely manner. Condition ? The audit was not completed and uploaded until after the due date of March 31, 2023. Effect of Potential Effect - Untimely reports can prevent the Organization?s funders to make appropriate decisions regarding the Organization?s programs. Questioned Costs - None Context ? The Schedule of Expenditures of Federal Awards was not completed in a timely manner causing the audit to be delayed and late. Recommendation ? Management should make the proper changes to its finance functions to ensure it has sufficient staffing resources to keep its accounting records up to date for its federal programs. Views of Responsible Officials - See Corrective Action Plan.

Corrective Action Plan

Section III - Federal Awards Findings and Questioned Costs Finding #2022-002 Material Weakness - Late Submission of Federal Single Audit Report Recommendation: Management should make the proper changes to its finance functions to ensure it has sufficient staffing resources to keep its accounting records up to date for its federal programs. Corrective Action: The Theatre has experienced difficulty hiring a qualified Accounting Manager due to the current tight labor market and limitations on ability to provide market-level compensation. At its meeting on Monday, April 17, 2023, the Internal Committee of the Board of Directors of the Theatre approved Management entering into an agreement for services with Your Part-Time Controller, a firm that specializes in providing outsourced accounting services to non-profit entities. The firm is expected to begin working with Management within 30 days to assess the current accounting system, develop and then implement a plan for strengthening the entire accounting and financial reporting framework. In addition, the Board has added two Directors with extensive financial backgrounds who will be working closely with Management to support this project and ensure that timely and accurate financial reporting is available to both the Board and the constituents of the Theatre going forward. Person Responsible for Corrective Action: Rufus de Rham, Executive Director Anticipate Completion Date for Corrective Action Plan: The Plan will be implemented immediately to ensure timely audit completion for the period ending June 30, 2023.

Categories

Reporting Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 598889 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
59.075 Shuttered Venue Operators Grant Program $1.25M