FAC Explorer

Finding 442859 (2022-002)

Significant Deficiency
Requirement
ABP
Questioned Costs
$1
Year
2022
Accepted
2023-05-25
Audit: 312500
Organization: The Cleveland Play House (OH)
Auditor: Maloney + Novotny LLC

AI Summary

  • Core Issue: Cleveland Play House lacks adequate documentation for federal program charges, with 26 out of 40 payroll charges and 2 out of 37 non-payroll charges unsupported.
  • Impacted Requirements: Non-compliance with 2 CFR 200.403(g) for cost documentation and Section 200.302 for financial management system standards.
  • Recommended Follow-Up: Implement a policy for timesheet approval and ensure staff are trained on documentation retention for all expenditures.

Finding Text

Finding 2022-002 Significant DeficiencyAssistance Listing: 84.351 C.A.R.E.Condition:Cleveland Play House does not have adequate documentation to support all charges to the federalprogram.Of the 40 payroll charges tested, 26 did not have adequate documentation. In addition, it was notedthat for 2 of the 37 non-payroll charges tested supporting documentation was unable to be located.In addition, management provided an Excel spreadsheet to support the charges that were made to theprogram rather than reporting from their financial management system that is compliant with Section200.302.Criteria:2 CFR 200.403(g) states that for costs to be allowed under Federal awards, they must be adequatelydocumented.In addition, Section 200.302 requires that the financial management system must provide for anidentification, in its accounts, of all federal awards received and expended and the federal programsunder which they were received; an accurate, current, and complete disclosure of the financial resultsof each federal award or program; and a comparison of expenditures with budget amounts for eachfederal award.Cause:Due to significant organizational turnover, individuals were not completing timesheets to documentlevel of effort for federal programs. Although management was verbally communicating with theseindividuals during the year and tracking the time they spent on the program within a spreadsheet, thisis not considered adequate documentation. In addition, and also a result of the turnover, certaindocumentation to support non-payroll expenditures was unable to be located.Effect:Cleveland Play House did not have adequate documentation to support all costs charged to the federalprogram. In addition, an ineffective financial management system could lead to incorrectidentification of costs charged to a federal program and an inability to substantiate that double-chargingdid not occur.Repeat finding:This is not a repeat finding.Questioned costs:Non-payroll: $974Payroll: $20,720Recommendation:We recommend that Cleveland Play House develop a policy and procedure to ensure that all hourssubmitted for federal reimbursement are supported with timesheets that are approved by a supervisor.In addition, staff should be made aware of the policy and procedures to ensure retention ofdocumentation for non-payroll expenditures.Views of responsible officials:Management concurs with this recommendation. See also corrective action plan.

Corrective Action Plan

Finding Number: 2022-002Planned Corrective Action: Cleveland Play House had extensive turnover during the 2022 fiscal yearwhich resulted in several vacancies, including the Director of Finance position, for a significant portion ofthe year. As a result, many of the reports that are standard practice in our organization were not beingcompleted. In addition, the filing of certain documentation to support expenditures was not being doneconsistently. The Director of Finance position was filled in the fall of 2022. As a result, documentationof allowable expenditures is being addressed for the fiscal 2023 audit.In addition to turnover, the organization transitioned to a new general ledger system with a new chartof accounts in fiscal year 2022. As a result of this transition and the vacancies mentioned above, certaindata pertaining to the federal programs was not being captured. Management has informed all staff ofthe requirements to track federal programs within the general ledger accounts.Anticipated Completion Date: June 30, 2023Responsible Contact Person: Erica Tkachyk, Director of Finance

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1019301 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.351 Arts in Education $1.11M
84.287 Twenty-First Century Community Learning Centers $542,915
59.075 Shuttered Venue Operators Grant Program $396,457
84.425 Education Stabilization Fund $150,000