Limited Scope Audit on Selected Awards to Mid-America Arts Alliance

We conducted a limited scope audit of Mid-America Arts Alliance (M-AAA) for the period of July 1, 2015 to June 30, 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 M-AAA generally complied with the financial management system and recordkeeping requirements established by OMB and NEA. However, we identified some areas requiring improvement to ensure that M-AAA complies with OMB and NEA award requirements. The following are specific deficiencies requiring corrective action:M-AAA did not report actual costs on its Federal Financial Report for NEA Award Nos. 14-6100-2002 and 15-6100-2058; M-AAA reported unsupported costs in its total outlays for NEA Award Nos. 14-6100-2002, 15-6100-2058, and 17-6100-7006; M-AAA did not have written policies and procedures for the management of Federal awards; M-AAA 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; M-AAA did not have record retention policies and procedures that meet Federal award requirements; and M-AAA did not have written policies and procedures for subrecipient monitoring.