FAC Explorer

Finding 514237 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-12-13
Audit: 332445
Organization: Rochester Philharmonic Orchestra, Inc. (NY)
Auditor: Efpr Group CPAS PLLC

AI Summary

  • Core Issue: Poor record maintenance hindered the identification of program expenditures, delaying the audit process.
  • Impacted Requirements: The Data Collection Form for the year ended June 30, 2022 was not filed on time, violating federal filing requirements.
  • Recommended Follow-Up: Review and enhance internal controls to ensure accurate tracking of federal expenditures and timely submission of required forms.

Finding Text

Condition: Record maintenance did not allow easy identification of program expenditures, causing a delay in the audit, resulting in the Data Collection Form for the year ended June 30, 2022 not being filed with the Federal Audit Clearinghouse within nine months of year-end. Criteria: Management is responsible for establishing and maintaining effective internal controls for the fair and timely presentation of the schedule of expenditures of federal award. Cause: The late filing resulted from a lack of effective internal controls over Federal financial reporting. Effect of Condition: The Data Collection Form is late and does not meet the Federal requirement. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Organization's internal control system should be reviewed and modified to properly identify Federal expenditures and implement controls to complete the timely submission of the Data Collection Form.

Corrective Action Plan

During the grant period we experienced significant turnover in our finance department, which resulted in delayed posting of transactions and reconciliations, and a failure to create a centralized tracking system to document all expenditures related to our Shuttered Venue Operators Grant. This lack of a centralized tracking system, plus our lack of experience with the Single Audit process, initially led to significant delays in providing documentation to our auditors to back up the reported use of SVOG funds. However, after much delay we were able to provide backup. On December 12, 2024 the RPO Finance Committee will be asked to adopt a policy that would require the RPO to implement a tracking system that will document each unique use of Federal funds should we ever again receive Federal funding at a level that requires a single audit. Management expects to have this action plan completed as of that date.

Categories

Reporting

Other Findings in this Audit

  • 1090679 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.075 Shuttered Venue Operators Grant Program $1.51M