Finding 51380 (2022-003)

Significant Deficiency
Requirement
P
Questioned Costs
$1
Year
2022
Accepted
2023-02-02
Audit: 45158
Organization: The Naples Players, Inc. (FL)

AI Summary

  • Core Issue: Invoices were paid without proper approval from the CEO/Executive Artistic Director.
  • Impacted Requirements: Internal control procedures require CEO/Executive Artistic Director approval for all invoices.
  • Recommended Follow-Up: Ensure all invoices have documented approval before payment to prevent unauthorized transactions.

Finding Text

2022 ? 003 Federal Agency: Small Business Administration Federal Program Name: Shuttered Venue Operators Grant Assistance Listing Number: 59.075 Federal Award Identification Number and Year: SBAHQ21SV005145 2022 Award Period: 7/17/2021 ? 12/31/2021 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The internal control procedures state the CEO/Executive Artistic Director approves invoices. Condition: From two separate testing populations, three of eight and twelve of forty testing selections did not show evidence of approval by the CEO/Executive Artistic Director. Questioned costs: Questioned costs from unapproved invoices totaled $1,508 and $6,569, respectively. Context: From two separate testing populations, three of eight and twelve of forty testing selections did not show evidence of approval by the CEO/Executive Artistic Director. Cause: Invoices were paid without evidence of approval by the CEO/Executive Artistic Director. Effect: Unauthorized invoices could be paid. Repeat Finding: No Recommendation: We recommend all invoices show evidence of approval by the CEO/Executive Artistic Director prior to payment. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Small Business Administration Naples Players, Inc. respectfully submits the following corrective action plan for the year ended April 30, 2022. Audit period: May 1, 2021 ? April 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS 2022-002 Material Weakness in Internal Control over Segregation of Duties Recommendation: We recommend the Organization develop internal control policies to implement segregation of duties to the extent possible. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: CFO and experienced accounting assistant hired. Banking transactions have been segregated. Bookkeeping duties are completed by accounting assistant and reviewed by CFO. Payments are approved by CEO. Monthly reconciliations to bank statement, ticket sales, receivables and payables are prepared or reviewed by CFO. Name(s) of the contact person(s) responsible for corrective action: Doren Danis Planned completion date for corrective action plan: June, 2022 ? May, 2023

Categories

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 51378 2022-001
    Material Weakness
  • 51379 2022-002
    Material Weakness
  • 51381 2022-004
    Significant Deficiency
  • 627820 2022-001
    Material Weakness
  • 627821 2022-002
    Material Weakness
  • 627822 2022-003
    Significant Deficiency
  • 627823 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.075 Shuttered Venue Operators Grant Program $818,071