Finding 59321 (2022-005)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2022-11-02

Audit: 50356

Organization: Arizona Theatre Company (AZ)

Auditor: Beachfleischman PLLC

AI Summary

Answer: The Organization lacks required written policies for procurement and financial management.
Trend: This is the first year receiving Federal funding, leading to insufficient documentation due to limited staff resources.
List: To address this, the Organization should prioritize creating and implementing written policies to clarify Federal contract requirements for employees.

Finding Text

Criteria: Non-Federal entities are required to have written policies, procedures, and standards of conduct. Condition/Context: The Organization does not have written policies for procurement, allowable costs, payment management, etc. as required by 2 CFR 200, Subparts D and E. Cause: This is the first year the Organization has received any Federal funding, and did not have the staff resources to document their policies and procedures in writing. Effect: Employees could be unclear of Federal contract requirements without documented policies and procedures.

Corrective Action Plan

The Organization has no prior history of Federal funds, and received notice of emergency, COVID relief funds in July of the audit year. There was no prior need to have written policies and no realistic opportunity to develop written policies with respect to 2 CFR 200, Subparts D and E in the given circumstances. The Organization agrees with the finding, and will allocate staff resources to document policies and procedures related to compliance with Federal funding regulations as needed in the future.

Other Findings in this Audit

59319 2022-003

Significant Deficiency
59320 2022-004

Significant Deficiency
635761 2022-003

Significant Deficiency
635762 2022-004

Significant Deficiency
635763 2022-005

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
59.075	Shuttered Venue Operators Grant Program	$2.21M