THE PENNSYLVANIA BALLET ASSOCIATIONNon-Profit

Finding #2021-001 Criteria It is required under 2 CFR section 200.512, that the audit must be completed and the data collection form be submitted within the earlier of 30 calendar days after receipts of the auditor?s report, or nine months after the end of the audit period. Condition The Pennsylvania Ballet Association d/b/a Philadelphia Ballet did not complete the audit within the prescribed deadline. Cause Due to the complex nature of the federal regulations associated with the Shuttered Venue Operators Grant (?SVOG?) and the evolving guidance, The Pennsylvania Ballet Association d/b/a Philadelphia Ballet was not aware that the reimbursement of pre-award costs was to be reported in the year of the award. By including the pre-award costs related to the SVOG grant within total grant expenditures for the year ended July 31, 2021, federal expenditures exceeded the $750,000 threshold, requiring an audit in accordance with 2 CFR section 200.512. Effect The audit required by 2 CFR section 200.512 was not completed timely. Recommendation We recommend that audits required under 2 CFR section 200.512 are completed by the prescribed deadline. Management Response Due to the complex nature of the federal regulations associated with the SVOG and the evolving guidance, we were not aware that the reimbursement of pre-award costs was to be reported in the year of the award. By including the pre-award costs related to the SVOG grant within total grant expenditures for the year ended July 31, 2021, federal expenditures exceeded the $750,000 threshold, requiring an audit in accordance with 2 CFR section 200.512. Future audits required by 2 CFR section 200.512 will be completed timely.