Audit 47434

Program: Shuttered Venue Operations Program Assisting Lister Number: 59.075 Federal Grantor: U.S. Small Business Administration Passed-through: N/A Award No. and Year: SBAHQ21SV002930.2 and 2022 Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: 2 CFR 200.430(i), Standards for Documentation of Personnel Expenses, states that charges to Federal awards for salaries and wage records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During our testing of the Foundation?s compliance with the Activities Allowed or Unallowed, and Allowable Costs/Costs Principles compliance requirements, we noted that in 37 of 40 payroll program expenditures selected, the employee?s timecard was not approved by a supervisor. Cause: The Foundation?s procedures did not consistently ensure that the review of timecards was documented. Effect: Lack of review and approval for personnel hours could lead to unallowable activities and costs to be charged to the Federal program. Questioned Costs: No questioned costs were identified as a result of our procedures. Repeat Finding from Prior Years: N/A ? First year of Single Audit. Recommendation: We recommend that the Foundation modify and strengthen its current policies and procedures to ensure that all timecards consistently document evidence of approval. The procedures should also address the compensating controls for circumstances where obtaining a supervisor?s approval is not possible. View of Responsible Officials: Management agrees and has designed controls for the supervisor to approve the timecards and ensure the costs are allowable costs.

Program: Shuttered Venue Operations Program Assisting Lister Number: 59.075 Federal Grantor: U.S. Small Business Administration Passed-through: N/A Award No. and Year: SBAHQ21SV002930.2 and 2022 Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: 2 CFR 200.430(i), Standards for Documentation of Personnel Expenses, states that charges to Federal awards for salaries and wage records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During our testing of the Foundation?s compliance with the Activities Allowed or Unallowed, and Allowable Costs/Costs Principles compliance requirements, we noted that in 37 of 40 payroll program expenditures selected, the employee?s timecard was not approved by a supervisor. Cause: The Foundation?s procedures did not consistently ensure that the review of timecards was documented. Effect: Lack of review and approval for personnel hours could lead to unallowable activities and costs to be charged to the Federal program. Questioned Costs: No questioned costs were identified as a result of our procedures. Repeat Finding from Prior Years: N/A ? First year of Single Audit. Recommendation: We recommend that the Foundation modify and strengthen its current policies and procedures to ensure that all timecards consistently document evidence of approval. The procedures should also address the compensating controls for circumstances where obtaining a supervisor?s approval is not possible. View of Responsible Officials: Management agrees and has designed controls for the supervisor to approve the timecards and ensure the costs are allowable costs.