Bishop Museum Corrective Action Plan Fiscal Year Ended June 30, 2022 The following finding was cited in the single audit for the Bishop Museum for the period ending June 30, 2022: Finding 2022-001: Criteria - 2 CFR 200.302{b)(l) of the Uniform Guidance states that a nonfederal entity must identify in its accounts all federal awards received and expended, as well as the federal programs under which they are received, and those amounts must be accurately and completely reported on the SEFA. Condition - During the audit, for the year ended June 30, 2022, expenditures of federal awards for certain programs was not included in the SEFA provided by the Museum. The SEFA was subsequently corrected and one of the federal programs was identified to be a major federal award program. Cause - The funds received and the federal expenditures for the programs were not recorded in the Museum's general ledger in the same manner as the other federal programs, and therefore, the funds expended were not identified and reported on the SEFA. Effect or Potential Effect -A federal program that should have been identified as a major program would not have been included on the SEFA and not subjected to the required audit procedures. Recommendation - All expenditures of federal awards should be recorded in the general ledger in a consistent manner such that the expenditures can be readily identified in preparing the SEFA. Action Plan: Bishop Museum will revise its Budget Center Account form to incorporate and identify all federal funded activities, This revision will eliminate human error of omission. This Budget Center Account form is used to create new distribution codes within the MIP accounting system. Currently this form does not have a line item to specifically address certain critical information that is included in the Schedule of Expenditures of Federal Awards {SEFA). The revision will entail the following additional information to be added in the form and in MIP accounting software. ? Assistance Listing Number {ALN) or Catalog of Federal Domestic Assistance {CFDA) ? Federal Award Identification Number (FAIN) ? Dates of Project ? List of Fiscal Years impacted by the Dates of Project ? Total award amount Following the revisions, current personnel involved in creating the new distribution codes should ensure that the additional information mentioned above is included. These five new, critical line items will aid in the development of the SEFA list each fiscal year, and eliminate human error of omission. Responsible Party: Tracie Mackenzie, Research and Collections Grants and Office Manager tracie@bishopmuseum.org (808) 262-3325 Bernajet Salvanera, Director of Accounting Bernajet.salvanera@bishopmuseum.org (808) 847-8274 Implementation: The use of the revised form and adding the additional information in MIP will be implemented starting July 1, 2023 and it will be an ongoing procedure.