Department of Museums, Library and Arts
State Council on the Arts
Results in Brief
Although the State Council on the Arts has some controls over the grant
process, it has not established written procedures that address monitoring,
accounting, and reporting of grant activity. As a result, the Council's
procedures do not ensure compliance with state and federal requirements.
In addition, the Agency inconsistently recorded operating and grant transactions,
and failed to document that key elements of the grant process took place.
Because of these weaknesses, the Council could benefit by requesting assistance
from the Office of Financial Management, Training and Controls.
1. The Council has not developed written accounting procedures or allocation
methods to ensure the proper recording of grant transactions, nor does
it maintain documentation supporting the allocations made. We found administrative
expenditures were inconsistently recorded in operating and grant categories,
while payments to grantees were often commingled with other unrelated grantees.
2. Charging administrative expenses to various categories avoids procedures established for revising agency work programs when state budgeted monies are exhausted. For instance, if the Council had not allocated certain travel and telephone costs, it would have over expended the travel and operating allotments as approved by the Legislature. (page 10)
3. The Council does not maintain documentation supporting its federal
reimbursement calculations. The Council also has not developed written
procedures to ensure the accurate and consistent calculation of cost reimbursements
and the preparation of federal reports. As a result, we were unable to
verify the accuracy of expenditures reported on the federal reports. (page
4. Most of the 15 grants we examined did not have evidence of periodic monitoring of grantee progress or compliance with financial requirements. (page 11)
5. The Council does not always review grantee draw-down requests. Six of 15 grantee draw-down requests did not have evidence of the Council's review. In one case, the Council mistakenly paid $300 more than the authorized award amount. (page 12)