Limited Scope Audit on Selected Awards to Mainstreet Uptown Butte, Inc.

We conducted a limited scope audit of Mainstreet Uptown Butte, Inc. (MSUB) for the period of June 1, 2015 to March 31, 2018. Limited scope audits involve a limited review of financial and nonfinancial information to ensure validity and accuracy of award recipients’ reported information, and compliance with state and Federal requirements. Our limited scope audit concluded that MSUB generally complied with the financial management system and recordkeeping requirements established by OMB and NEA. However, we identified some areas requiring improvement, as follows: MSUB reported unallowable costs in its total outlays for two NEA Awards; MSUB did not report accurate costs in its financial management system for one NEA Award; MSUB did not report actual costs on its Federal Financial Reports (FFR) for three awards; MSUB did not maintain adequate documentation to support costs charged to three awards; MSUB reported costs outside the period of performance for one NEA Award; MSUB did not separately identify costs by award in its financial management system; MSUB did not submit the required FFR and the Final Descriptive Report within 90 days from the end of the period of performance for one award; MSUB did not have written 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; and MSUB did not have written policies and procedures for managing Federal awards.