Finding 34423 (2022-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-07-25

AI Summary

  • Core Issue: The Organization failed to accurately track and report federal expenditures due to significant turnover in the Finance Department.
  • Impacted Requirements: Compliance with 2 CFR 200.302 for the Schedule of Expenditures of Federal Awards (SEFA) is at risk, leading to potential inaccuracies in reporting.
  • Recommended Follow-Up: Implement new procedures and controls to ensure all federal award activities are captured accurately, with changes expected before the end of the fiscal year.

Finding Text

Finding #2022-002 Type: Significant Deficiency over Schedule of Expenditures of Federal Awards (SEFA) Criteria/Requirement The Organization is required to clearly identify and track federal expenditures in accordance with 2 CFR 200.302. Condition/Context During the year, the Organization experienced significant turnover in their Finance Department. The Organization did not identify all federal awards accurately and timely to include in the SEFA. Effect Total expenditures by federal funding source may not be properly reported and Uniform Guidance reporting may be inaccurate. Questioned Costs None. Recommendation The Organization should implement procedures and controls to accurately capture all activity under federal awards during the year to be able to prepare a complete and accurate the SEFA. Management?s Response We concur with the audit findings and recommendations for the defined period and have pre-emptively been on a path to remedy these problems. OSF is currently redesigning key components of its accounting system to clearly identify federal expenditures with minimal adjustments. Implementation of these changes will occur before the end of the current fiscal year.

Corrective Action Plan

OSF is currently redesigning key components of its accounting system to clearly identify federal expenditures with minimal adjustments. Anticipated Completing Date October 31, 2023

Categories

Reporting

Other Findings in this Audit

  • 34422 2022-001
    Material Weakness
  • 610864 2022-001
    Material Weakness
  • 610865 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.075 Shuttered Venue Operators Grant Program $7.40M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $75,080
45.024 Promotion of the Arts_grants to Organizations and Individuals $12,500
21.027 Coronavirus State and Local Fiscal Recovery Funds $10,000