2022-003 Small Business Administration Financial Assistance Listing #59.075 COVID-19 Shuttered Venue Operators Grant Program Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Material Weakness in Internal Control over Compliance Condition: While the Organization...
2022-003 Small Business Administration Financial Assistance Listing #59.075 COVID-19 Shuttered Venue Operators Grant Program Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Material Weakness in Internal Control over Compliance Condition: While the Organization had policies and procedures in place over the review and approval of expenditures, during the testing of expenditures there were certain items that lacked the documentation of such review and approval. The Organization did not retain the required documentation to support the review of expenditures. Cause: The Organization had turnover and limited staffing available. The review and approval process was a collaborative process that took place in face to face meetings without documentation retained. Management?s Response and Corrective Action Plan: The Museum Deputy Directory/COO reviewed all grant expenditures in detail for accuracy and approved them before submission to the SBA, and written documentation of the review and approval of the submitted expenditures was maintained. However, written documentation of the approval of certain expenditures at the time they were actually incurred was not maintained, even though there were consistent, contemporaneous oral communications between the Deputy Director/COO, the Controller and the Payroll Administrator regarding those expenditures. As of January 2023, the CFO has implemented procedures whereby written documentation of approval of those expenditures is maintained. Responsible Individual: Robin Klung, CFO Anticipated Completion Date: January 2023