Audit 31086

SECTION II ? FINDINGS ?FINANCIAL STATEMENT AUDIT See ?SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS? regarding the financial statement audit finding, 2022-001. SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding: 2022-001 Federal Agency: U.S. Small Business Administration Federal Program Title: Shuttered Venue Operators Grant CFDA No: 59.075 Award Periods: January 27, 2021 through June 30, 2022 Condition: Single Audit Report should have been submitted nine month after year end. Criteria: Uniform Guidance requires Organizations that expend $750,000 and greater of federal funds to conduct a single audit and submit the data collection form to the Federal Clearing House no later than nine months after year end. Context: Due to key personnel resigning from the Organization and a change in operating software certain records could not be reconciled to the general ledger timely. Cause: The Organization expended enough federal funds to require an audit to be performed under Uniform Guidance requirements. This year, the Organization was unable to meet the Uniform Guidance requirement of submitting the single audit report nine months after year end. Effect: The Organization's audit report under Uniform Guidance was not submitted timely. Recommendation: The Organization should implement procedures that would ensure personnel have the ability to use the Organization?s operating software in order to prepare timely for a single audit, conduct the audit earlier in the year and submit the report no later than nine months after year end. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will prevent future delays of a single audit report by having staff with appropriate training on its operating software that can accommodate for the timely submission of a Single Audit. Name of Contact Persons: Paul Garman, Executive Director Corrective Action: During 2023, management represented that new staff members were hired to replace the staff members that resigned and that these staff members received additional training for the use of the Organization?s new software to ensure the Organization can reconcile software reports timely to the general ledger. Additionally, management has represented the Organization did not receive enough federal funds in the subsequent period to require a Single Audit. Proposed Completion Date: Management has represented that the new staff members received additional training with its new software as of January 31, 2023.

SECTION II ? FINDINGS ?FINANCIAL STATEMENT AUDIT See ?SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS? regarding the financial statement audit finding, 2022-001. SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding: 2022-001 Federal Agency: U.S. Small Business Administration Federal Program Title: Shuttered Venue Operators Grant CFDA No: 59.075 Award Periods: January 27, 2021 through June 30, 2022 Condition: Single Audit Report should have been submitted nine month after year end. Criteria: Uniform Guidance requires Organizations that expend $750,000 and greater of federal funds to conduct a single audit and submit the data collection form to the Federal Clearing House no later than nine months after year end. Context: Due to key personnel resigning from the Organization and a change in operating software certain records could not be reconciled to the general ledger timely. Cause: The Organization expended enough federal funds to require an audit to be performed under Uniform Guidance requirements. This year, the Organization was unable to meet the Uniform Guidance requirement of submitting the single audit report nine months after year end. Effect: The Organization's audit report under Uniform Guidance was not submitted timely. Recommendation: The Organization should implement procedures that would ensure personnel have the ability to use the Organization?s operating software in order to prepare timely for a single audit, conduct the audit earlier in the year and submit the report no later than nine months after year end. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will prevent future delays of a single audit report by having staff with appropriate training on its operating software that can accommodate for the timely submission of a Single Audit. Name of Contact Persons: Paul Garman, Executive Director Corrective Action: During 2023, management represented that new staff members were hired to replace the staff members that resigned and that these staff members received additional training for the use of the Organization?s new software to ensure the Organization can reconcile software reports timely to the general ledger. Additionally, management has represented the Organization did not receive enough federal funds in the subsequent period to require a Single Audit. Proposed Completion Date: Management has represented that the new staff members received additional training with its new software as of January 31, 2023.