FAC Explorer

Finding 401276 (2022-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-06-20
Audit: 309308
Organization: Americans for the Arts (DC)
Auditor: Marcum LLP

AI Summary

  • Core Issue: The organization missed the deadline to submit the Data Collection Form, violating federal regulations.
  • Impacted Requirements: Timely submission is required within 30 days of receiving audited reports or nine months after the fiscal year end.
  • Recommended Follow-Up: Improve the year-end financial close process to ensure compliance with reporting deadlines for future audits.

Finding Text

ALN #45.024 Finding No. 2022-002: Reporting – Compliance Finding and Material Weakness in Internal Control Over Compliance Criteria Federal regulations require that the Data Collection Form be submitted within 30 days of management’s receipt of the audited reports or within nine months of an organization’s fiscal year end, whichever is earliest. Context The Organization did not timely submit its Data Collection Form to the Federal Clearinghouse by the required due date for its 2022 fiscal year end. Cause The delay in filing was the result of delay in the year-end close process for the year ended December 31, 2022. Effect Noncompliance under the Uniform Guidance could be considered as part of any future award decisions by federal agencies. Questioned Cost: None Repeat Finding Yes, this is a repeat of finding number 2021-002 Recommendation We recommend that management enhance its year end financial close process to include sufficient procedures to adequately prepare for the performance of a Single Audit within the prescribed reporting deadline. Views of Responsible Officials and Planned Corrective Actions See Correction Action Plan.

Corrective Action Plan

Americans for the Arts Corrective Action Plan Cognizant or Oversight Agency for Audit: National Endowment for the Arts Americans for the Arts respectfully submits the following orrective action plan for the year ended December 31, 2022: Name and address of independent public accounting firm: Marcum LLP 1899 L Street NW Suite 850 Washington DC 20036 Audit period: The year ended December 31, 2022. The findings from the 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. ALN #45.024 Finding No. 2022-002: Reporting – Compliance Finding and Material Weakness in Internal Control Over Compliance Recommendation We recommend that management enhance its year end financial close process to include sufficient procedures to adequately prepare for the performance of a Single Audit within the prescribed reporting deadline Management Response A new outsourced accounting team was hired and assumed most accounting duties in early 2023. This new team took over all accounting duties by Dec. 2023. They have streamlined various finance functions and are continuing to improve the close process to ensure the 2023 audit is started and completed in a timely manner. If the National Endowment for the Arts has questions regarding this plan, please call Matt Ryan at 240.357.3420 or mryan@artsusa.org. Sincerely, Matt X. Ryan, CPA, CFE Chief Financial Officer Americans for the Arts

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 977718 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
45.024 Promotion of the Arts_grants to Organizations and Individuals $1.73M