Audit 21081

2022-003: Supporting documentation Federal Agency: U.S. Small Business Administration Federal Program Name: Shuttered Venue Operator Grant Assistant Listing Number: 59.075 Federal Award Identification Number and Year: SBAHQ21SV000963.2-2022 Award Period: July 8, 2021 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and SVOG Post-Award FAQs requires compliance with the provisions of allowable costs and cost principles. The organization should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the organization did not have adequate internal controls designed to ensure maintenance of clear records of the costs charged to the SVOG award substantiating eligibility and allowability. Questioned Costs: $625 actual, $7,243 likely Context: During our testing, we noted the organization did not retain documentation supporting costs charged to the grant for 6 of 60 transactions. Cause: The organization was unaware that emails supporting costs were no longer available after information technology system migration. Effect: No instances of noncompliance with the provision of allowable costs and cost principles were noted, based on description of expense and vendor services; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No Recommendation: We recommend the organization design controls to ensure an adequate review process is in place to review costs charged to grants are properly supported by documentation. Views of responsible officials: There is no significant disagreement with the audit finding.

2022-003: Supporting documentation Federal Agency: U.S. Small Business Administration Federal Program Name: Shuttered Venue Operator Grant Assistant Listing Number: 59.075 Federal Award Identification Number and Year: SBAHQ21SV000963.2-2022 Award Period: July 8, 2021 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and SVOG Post-Award FAQs requires compliance with the provisions of allowable costs and cost principles. The organization should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the organization did not have adequate internal controls designed to ensure maintenance of clear records of the costs charged to the SVOG award substantiating eligibility and allowability. Questioned Costs: $625 actual, $7,243 likely Context: During our testing, we noted the organization did not retain documentation supporting costs charged to the grant for 6 of 60 transactions. Cause: The organization was unaware that emails supporting costs were no longer available after information technology system migration. Effect: No instances of noncompliance with the provision of allowable costs and cost principles were noted, based on description of expense and vendor services; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No Recommendation: We recommend the organization design controls to ensure an adequate review process is in place to review costs charged to grants are properly supported by documentation. Views of responsible officials: There is no significant disagreement with the audit finding.