Limited Scope Audit Report on Selected Grants to California Arts Council

A limited scope performance audit (LSPA) of the California Arts Council (CAC) was conducted for the period of July 1, 2014 through June 30, 2017. LSPAs involve a limited review of financial and non-financial information of award recipients to ensure validity and accuracy of reported information, and compliance with federal requirements. Our limited scope audit concluded that CAC generally complied with the financial management system and recordkeeping requirements established by OMB and NEA. However, we also determined the following:The CAC overstated grant expenditures reported on NEA Grant No. 14-6100-2036 FFR submitted to NEA. Additionally, the CAC did not adhere to Federal requirements when reporting costs to NEA Grant No. 14-6100-2036. This resulted in unsupported costs included on the FFR. CAC did not submit final reports for NEA Grant Nos. 15-6100-200 5 and 16-6100-2046. CAC did not have policies and procedures in place to ensure that contractors or recipients were not debarred or suspended from receiving Federal assistance prior to the award or payment of Federal funds. CAC did not have written policies and procedures in place for the management of Federal awards. CAC did not have a Section 504 Self-Evaluation on file as required by NEA General Terms.