Finding 499256 (2023-002)

Significant Deficiency
Requirement
ABC
Questioned Costs
-
Year
2023
Accepted
2024-09-28
Audit: 322061
Organization: Civic Arts (TX)

AI Summary

  • Core Issue: Civic Arts lacks written policies and procedures for federal payments and cost allowability.
  • Impacted Requirements: This deficiency violates the Uniform Guidance criteria for managing federal awards.
  • Recommended Follow-Up: Civic Arts should develop and implement the necessary written policies and procedures to ensure compliance.

Finding Text

Written Policies and Procedures Significant Deficiency in Internal Control Over Compliance Criteria – The Uniform Guidance requires a non-federal entity that has expended federal awards to have written procedures related to (1) federal payments, including methods to minimize the time elapsing between the transfer of federal funds and the disbursement by the non-federal entity (§200.302(b)(6)) and (2) allowability of costs in accordance with the Uniform Guidance and the terms and conditions of the federal award (§200.302(b)(7)). Condition – There are no written policies and procedures related to federal payments and allowability of costs as of December 31, 2023. Cause – Written policies and procedures related to federal payments and allowability of costs were not created and implemented by Civic Arts. Effect – Civic Arts is not in compliance with the Uniform Guidance. Recommendations – Civic Arts should prepare and implement written policies and procedures related to federal payments and allowability of costs.

Corrective Action Plan

Management concurs with the recommendation as proposed and has developed written policies and procedures related to federal payments and allowability of costs. This has been implemented effective immediately.

Categories

Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 499255 2023-001
    Material Weakness
  • 499257 2023-003
    Significant Deficiency
  • 1075697 2023-001
    Material Weakness
  • 1075698 2023-002
    Significant Deficiency
  • 1075699 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
45.024 Promotion of the Arts Grants to Organizations and Individuals $1.46M