Finding 387476 (2023-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-03-28

Audit: 299646

Organization: Washington Drama Society, Inc. (DC)

Auditor: Bormel Grice & Huyett P A

AI Summary

Issue: The Organization submitted an inaccurate closeout report to the SBA due to a duplicate invoice for an expenditure.
Impacted Requirements: The failure to reverse the original expenditure led to discrepancies in financial reporting.
Recommended Follow-up: Ensure proper adjustments are made in accounting records before submitting reports to prevent future inaccuracies.

Finding Text

The Organization did not submit accurate information on its closeout report to SBA in 2023. A duplicate invoice was recorded in the accounting software for an expenditure after it was realized that the payee on the original check was incorrect. A second check was issued to the correct payee. The original physical check was properly voided, but the adjusting entry to reverse the original expenditure did not occur at that time. The error was discovered and corrected during the Organization’s preparation for their annual audit, subsequent to submitting the closeout report to SBA.

Corrective Action Plan

The Organization is committed to ensuring that appropriate review procedures are in place when reconciling accounts in order to adhere to proper reporting of receipts and disbursements on their reports.

Other Findings in this Audit

963918 2023-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
59.075	Shuttered Venue Operators Grant Program	$1.07M
99.U99	National Capital Arts and Cultural Affairs	$199,794
97.036	Disaster Grants - Public Assistance (presidentially Declared Disasters)	$195,363
21.027	Coronavirus State and Local Fiscal Recovery Funds	$142,477
19.040	Public Diplomacy Programs	$52,484
45.024	Promotion of the Arts_grants to Organizations and Individuals	$25,000