Finding 613251 (2022-001)

Significant Deficiency
Requirement
ABH
Questioned Costs
-
Year
2022
Accepted
2023-03-15
Audit: 30709
Organization: North Fourth Art Center (NM)

AI Summary

  • Core Issue: Timesheets for the Executive Director and Associate Director lack approval from the Board President since April 7, 2022.
  • Impacted Requirements: Failure to comply with CFR 200.303 regarding effective internal controls over Federal awards.
  • Recommended Follow-Up: Re-evaluate and strengthen policies and procedures to ensure proper supervisory review of timesheets and compliance with grant requirements.

Finding Text

Federal Program Information: Funding Agency: U. S. Small Business Administration Title: Shuttered Venue Operators Grant CFDA Number: 59.075 Federal Award Identification number SBAHQ21SV008985 Pass Through Entity: N/A Award Year: 2022 Condition: The timesheets for the Executive Director or Associate Director were not approved by the Board President for pay periods ending April 7, 2022 through present. Criteria: CFR 200.303 requires a non-Federal entity to Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ``Standards for Internal Control in the Federal Government?? issued by the Comptroller General of the United States and the ``Internal Control Integrated Framework??, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Questioned costs: None Effect: Payroll may be charged to the grant in error without supervisory review of timesheets. Cause: The Organization is not implementing appropriate policies and procedures to establish and maintain effective internal controls under the grant to insure compliance. Auditor's Recommendation: The auditor recommends that the Organization re-evaluate their policies and procedures to ensure that internal controls are designed and implemented to ensure compliance with grant requirements. View of Responsible Officials: The Organization concurs with all of CRI?s findings and recommendations for improvement. The Organization will work to strengthen its processes as noted in the corrective action plan

Categories

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 36809 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.075 Covid-19: Shuttered Venue Operators Grant Program $1.05M