We conducted a desk review of two National Endowment for the Arts (NEA) awards issued to the Gray Area Foundation for the Arts, Inc. (Gray Area). Based on our review, we determined that Gray Area did not fully comply with Federal grants management requirements. For instance, Gray Area: did not report actual costs on its Federal Financial Reports (FFRs) that included $225 in overstated costs; included $84,252 in unsupported costs on its FFR; reported $48,961 in cost incurred outside the award period on its FFR; did not submit adequate final reports by the reporting deadline; did not verify the contractors’ eligibility to receive Federal funds; and did not maintain policies and procedures for the management of Federal awards. Thus, we are questioning costs in the amount of $133,438. Based on our review, Gray Area did not meet the required cost share/match requirement resulting in a potential refund due to the NEA totaling $14,466. There are six recommendations addressed to Gray Area, and three recommendations to the NEA.
Wednesday, December 22, 2021
Agency Reviewed / Investigated:
Submitting OIG-Specific Report Number:
Type of Report:
Funds for Better Use:
Number of Recommendations: