Audit 2981

Criteria: Per the U.S. Small Business Administration Shuttered Venue Operators Grant Post-Award Frequently Asked Questions - 2022, Question 45, "grantees may use SVOG funds to pay personnel costs that have not already been reimbursed by other Federal funding sources, such as a PPP or EIDL, or wages credited through the Paid Sick and Family Leave Credits." Condition: During our testing of Museum's initially reported allowable and eligible costs, we noted that the Museum originally included payroll expenses which were already reimbursed through the Paycheck Protection Program (PPP) Federal funding source. Since these expenses were already reimbursed through another Federal funding source, there were not eligible expenses for the Shuttered Venue Operators Grant program. Subsequently, the Museum amended their initially reported SVOG closeout form to include revised eligible expenses which were not reimbursed through a Federal funding source, including the PPP. Through our additional testing procedures, we determined that there were no questioned costs required to be reported. Cause: The Museum did not have controls in place to ensure that the eligible costs were not identified as being reimbursed by other Federal funding sources. Recommendation: We recommend that the Museum implement procedures that ensure that the expenses used for Federal funding sources meet the required program eligibility criteria. Views of responsible officials and planned corrective actions: The Museum concurs with the recommendation. The Museum has implemented a new procedure to verify that expenses incurred for the Shuttered Venue Operator Grants program met the eligibility criteria established by the program, including that the expenses were not reimbursed by other Federal funding sources. In addition, the Museum is in the process of amending the previously submitted closeout form with the Small Business Administration to remove any expenses for which reimbursement was already received by other Federal funding sources. The Museum strives to continuously identify methods to improve internal controls.

Criteria: Per the U.S. Small Business Administration Shuttered Venue Operators Grant Post-Award Frequently Asked Questions - 2022, Question 132, "the Audit Report should be completed and submitted to SBA within 9 months of the end of the Grantee’s fiscal year in which $750,000 or more of Federal Funds have been expended" for non-Federal (including non-profit) entities. Condition: The Museum's fiscal year, in which more than $750,000 of Federal Funds were expended, ended on December 31, 2021. Per the SVOG Frequently Asked Questions guidance, the Audit Report should have been completed and submitted to the SBA by September 30, 2022. The audit report was not completed until August of 2023. Cause: The Museum did not have controls in place to ensure that Audit Report was completed and submitted in compliance with the SBA requirement for the Shuttered Venue Operators Grant program. Recommendation: We recommend that the Museum implement controls that ensure that any reporting compliance requirements related to the expenditure of Federal Funds are completed on a timely basis. Views of responsible officials and planned corrective actions: The Museum concurs with the recommendation. The Museum has implemented a new procedure to ensure that any future reporting compliance requirements related to the expenditure of Federal Funds are completed on a timely basis. The Museum strives to continuously identify methods to improve internal controls.

Criteria: Per the U.S. Small Business Administration Shuttered Venue Operators Grant Post-Award Frequently Asked Questions - 2022, Question 45, "grantees may use SVOG funds to pay personnel costs that have not already been reimbursed by other Federal funding sources, such as a PPP or EIDL, or wages credited through the Paid Sick and Family Leave Credits." Condition: During our testing of Museum's initially reported allowable and eligible costs, we noted that the Museum originally included payroll expenses which were already reimbursed through the Paycheck Protection Program (PPP) Federal funding source. Since these expenses were already reimbursed through another Federal funding source, there were not eligible expenses for the Shuttered Venue Operators Grant program. Subsequently, the Museum amended their initially reported SVOG closeout form to include revised eligible expenses which were not reimbursed through a Federal funding source, including the PPP. Through our additional testing procedures, we determined that there were no questioned costs required to be reported. Cause: The Museum did not have controls in place to ensure that the eligible costs were not identified as being reimbursed by other Federal funding sources. Recommendation: We recommend that the Museum implement procedures that ensure that the expenses used for Federal funding sources meet the required program eligibility criteria. Views of responsible officials and planned corrective actions: The Museum concurs with the recommendation. The Museum has implemented a new procedure to verify that expenses incurred for the Shuttered Venue Operator Grants program met the eligibility criteria established by the program, including that the expenses were not reimbursed by other Federal funding sources. In addition, the Museum is in the process of amending the previously submitted closeout form with the Small Business Administration to remove any expenses for which reimbursement was already received by other Federal funding sources. The Museum strives to continuously identify methods to improve internal controls.

Criteria: Per the U.S. Small Business Administration Shuttered Venue Operators Grant Post-Award Frequently Asked Questions - 2022, Question 132, "the Audit Report should be completed and submitted to SBA within 9 months of the end of the Grantee’s fiscal year in which $750,000 or more of Federal Funds have been expended" for non-Federal (including non-profit) entities. Condition: The Museum's fiscal year, in which more than $750,000 of Federal Funds were expended, ended on December 31, 2021. Per the SVOG Frequently Asked Questions guidance, the Audit Report should have been completed and submitted to the SBA by September 30, 2022. The audit report was not completed until August of 2023. Cause: The Museum did not have controls in place to ensure that Audit Report was completed and submitted in compliance with the SBA requirement for the Shuttered Venue Operators Grant program. Recommendation: We recommend that the Museum implement controls that ensure that any reporting compliance requirements related to the expenditure of Federal Funds are completed on a timely basis. Views of responsible officials and planned corrective actions: The Museum concurs with the recommendation. The Museum has implemented a new procedure to ensure that any future reporting compliance requirements related to the expenditure of Federal Funds are completed on a timely basis. The Museum strives to continuously identify methods to improve internal controls.