Finding Text
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.