Finding 584447 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-01-09

AI Summary

  • Issue: The Philharmonic did not file its audited financial statements and data collection form on time as required by Uniform Guidance.
  • Impact: Late filing may classify the Philharmonic as a “high-risk auditee,” potentially jeopardizing future federal funding.
  • Follow-up: Recommend improving year-end closing processes to ensure timely compliance with filing requirements; management has started implementing new procedures.

Finding Text

Federal Agency: Small Business Administration Statement of Condition: The June 30, 2022, audited financial statements and data collection form for the Philharmonic were not filed within the time required by Uniform Guidance. Criteria: Uniform Guidance requires that non-federal entities that expend more than $750,000 or more in a year in federal awards shall have a single audit conducted and section .320 requires that the audit shall be completed and the data collection form and reporting package shall be submitted within the earlier of 30 days after receipt of the auditors’ report or nine months after the end of the audit period. Cause: The Philharmonic’s filing process to ensure timely filing of the data collection form and of the financial statements was attributed to the delay of the audit due to the turnover of staff, thus causing a delay in the submission of the required reports. Effect: Late filing of the data collection form and reporting package will cause an auditee to be determined a “high-risk auditee” and could affect future federal grant funding. Recommendation: We recommend the Philharmonic improve their year-end closing processes in order to meet all filing requirements. Management Response: The Philharmonic has implemented new procedures to ensure the reporting will be done timely in future periods.

Categories

Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 8005 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.075 Shuttered Venue Operators Grant Program $1.10M