Finding 604481 (2022-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-01-03

AI Summary

  • Core Issue: The Center lacks required written policies for financial management as per 2 CFR §200.302(b)(7).
  • Impacted Requirements: This absence of policies puts the Center at risk of noncompliance with federal funding regulations and cost principles.
  • Recommended Follow-Up: The Center should draft, approve, and file these policies by May 31, 2023, to ensure compliance.

Finding Text

Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-Federal entities receiving Federal funds to have certain written policies, procedures, and standards of conduct (policies) in place. Condition and Context: The Center does not have the written policies in place in accordance with ?200.302 Financial Management paragraph (b)(7). Cause and Effect: As the policies referenced above are not written, the Center cannot be in compliance with the requirements. In addition, lack of written policies related to financial management may lead to noncompliance with allowable costs/cost principles requirements. Recommendation: We recommend the policies in accordance with ?200.302 Financial Management paragraph (b)(7) be written by the Center, approved by the Board of Directors, and included in the permanent files of the Center. Views of Responsible Officials and Planned Corrective Actions: The Center agrees with the recommendation and plans to implement the recommendation by May 31, 2023.

Categories

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 28038 2022-001
    Significant Deficiency
  • 28039 2022-002
    Significant Deficiency
  • 604480 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.075 Shuttered Venue Operators Grant Program $2.31M
45.025 Promotion of the Arts_partnership Agreements $5,309