FAC Explorer

Finding 48395 (2022-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-12-14
Audit: 50798
Organization: Dayton Performing Arts Alliance (OH)
Auditor: Brady Ware & Schoenfeld

AI Summary

  • Core Issue: The Alliance lacks a formal procurement policy.
  • Impacted Requirements: Purchases over $10,000 do not comply with Uniform Guidance for federal funding.
  • Recommended Follow-Up: Develop a procurement policy aligned with Uniform Guidance if federal funding is anticipated.

Finding Text

Condition: During our audit it was noted that the Alliance does not have a formal procurement policy. Criteria: Uniform Guidance imposes strict purchasing requirements on nonprofits receiving federal funding. Cause: The Alliance has not previously received federal funding and therefore did not need a formal procurement policy. Effect: Purchases made by the Alliance in excess of $10,000 are not meeting the Uniform Guidance requirements. Recommendation: We recommend that if the Alliance believes they will be receiving federal funding in the future, they implement a formal procurement policy that follows Uniform Guidance requirements. Views of Responsible Officials and Corrective Action: See Corrective Action Plan.

Corrective Action Plan

The Dayton Performing Arts Alliance primarily hires artists to present performances in the areas of Ballet, Opera, and Orchestral music. Wages and benefits, guest artist fees, stagehands, and venue hall rental account for 80% of total expenses. No formal procurement policy exists for other expenditures. Management agrees that if federal funding is expected in the future, that a formal procurement policy that follows Uniform Guidance requirements will be implemented.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 48394 2022-001
    Significant Deficiency
  • 624836 2022-001
    Significant Deficiency
  • 624837 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.075 Shuttered Venue Operators Grant Program $2.00M
45.024 Promotion of the Arts_grants to Organizations and Individuals $17,500