Limited Scope Audit Report on Selected NEA Grants to Mid Atlantic Arts Foundation, Inc.

Limited scope audits involve a limited review of financial and non-financial information of grant recipients to ensure validity and accuracy of reported information, and compliance with state and Federal requirements. Our audit was conducted in accordance with the Government Auditing Standards (2011), issued by the Comptroller General of the United States, and concluded that MAAF generally complied with financial management system and recordkeeping requirements. However, we identified some areas for improvement to ensure that MAAF complies with OMB and NEA grant requirements and improves its management of NEA awards. MAAF did not have written policies and procedures on suspension and debarment. MAAF included unallowable costs in its total outlays reported on one Federal Financial Report (FFR). Also, MAAF included unsupported costs in its total outlays reported on other FFRs.