2022-001 ? Finalize Budget Action Item Inaccuracies (Significant Deficiency) Identification of Federal Program: Name of Program: Shuttered Venue Operators Grant Program Assistance Listing Number: 59.075 Award Year: 2022 Pass-Through Entity: Direct Name of Federal Agency: U.S. Small Business Administration (?SBA?) Criteria: 2 CFR section 200.328 describes the financial reporting requirements for federal grant recipients. The terms and conditions of the award require the awardee to complete and submit the SF-425 report and a finalized budget (?Expense Report by Applicant?) using accurate data during the grant closeout process. The Finalized Budget Action Item allows grantees to update their budgets to reflect their finalized award and/or update allocations to allowable cost categories to align with actual or projected use of funds to date. Grantees do not need to request SBA approval to move costs between allowable cost categories. All grantees must complete the Finalize Budget Action Item. Condition: The following inaccuracies were noted within each allowable cost category reported on the Expense Report by Applicant, compared to actual expenses: Allowable Cost Category Expense Report by Applicant Actual expenses Difference 3. Equipment $ 40,000 $ - $ 40,000 5. Supplies 20,000 36,546 (16,546) 6. Contractual - 750,000 (750,000) 6b. Operating Leases 450,000 36,144 413,856 8d. Scheduled Debt Payments 550,000 - 550,000 8f. Other Business Expenses 60,000 14,299 45,701 8g. Administrative costs 20,000 8,032 11,968 8h. Insurance Payments 6,000 - 6,000 8i. Advertising 586,500 887,479 (300,979) Total $ 1,732,500 $ 1,732,500 $ - Cause: The errors in the Finalize Budget Action Item were due to inadequate review during the closeout process to ensure that the amounts reported agreed to actual grant expenditures. The management of the Association incorrectly believed that actual expenditures should exactly match the original budget which was initially approved. Effect: Improper preparation of the Finalize Budget Action Item resulted in the report being submitted while containing inaccurate amounts being reported within all allowable cost categories No questioned costs are reported within this finding, as the Association?s actual expenditures were greater than the federal award received, and all disbursements were for the purposes and objectives set forth in the terms and conditions of the federal award. Recommendation: The Association should review financial reports prior to submission and ensure that amounts agree to internal financial data, and are in compliance with the grant agreement. Views of Responsible Officials: Management of the Association concurs with the audit finding. The Association will enact procedures to ensure that grant reports are submitted with accurate financial information.
2022-001 ? Finalize Budget Action Item Inaccuracies (Significant Deficiency) Identification of Federal Program: Name of Program: Shuttered Venue Operators Grant Program Assistance Listing Number: 59.075 Award Year: 2022 Pass-Through Entity: Direct Name of Federal Agency: U.S. Small Business Administration (?SBA?) Criteria: 2 CFR section 200.328 describes the financial reporting requirements for federal grant recipients. The terms and conditions of the award require the awardee to complete and submit the SF-425 report and a finalized budget (?Expense Report by Applicant?) using accurate data during the grant closeout process. The Finalized Budget Action Item allows grantees to update their budgets to reflect their finalized award and/or update allocations to allowable cost categories to align with actual or projected use of funds to date. Grantees do not need to request SBA approval to move costs between allowable cost categories. All grantees must complete the Finalize Budget Action Item. Condition: The following inaccuracies were noted within each allowable cost category reported on the Expense Report by Applicant, compared to actual expenses: Allowable Cost Category Expense Report by Applicant Actual expenses Difference 3. Equipment $ 40,000 $ - $ 40,000 5. Supplies 20,000 36,546 (16,546) 6. Contractual - 750,000 (750,000) 6b. Operating Leases 450,000 36,144 413,856 8d. Scheduled Debt Payments 550,000 - 550,000 8f. Other Business Expenses 60,000 14,299 45,701 8g. Administrative costs 20,000 8,032 11,968 8h. Insurance Payments 6,000 - 6,000 8i. Advertising 586,500 887,479 (300,979) Total $ 1,732,500 $ 1,732,500 $ - Cause: The errors in the Finalize Budget Action Item were due to inadequate review during the closeout process to ensure that the amounts reported agreed to actual grant expenditures. The management of the Association incorrectly believed that actual expenditures should exactly match the original budget which was initially approved. Effect: Improper preparation of the Finalize Budget Action Item resulted in the report being submitted while containing inaccurate amounts being reported within all allowable cost categories No questioned costs are reported within this finding, as the Association?s actual expenditures were greater than the federal award received, and all disbursements were for the purposes and objectives set forth in the terms and conditions of the federal award. Recommendation: The Association should review financial reports prior to submission and ensure that amounts agree to internal financial data, and are in compliance with the grant agreement. Views of Responsible Officials: Management of the Association concurs with the audit finding. The Association will enact procedures to ensure that grant reports are submitted with accurate financial information.