Finding 22515 (2022-004)

2022-004 Small Business Administration Financial Assistance Listing #59.075 COVID-19 Shuttered Venue Operators Grant Program; SBAHQ21SV007152, July 10, 2021 to December 31, 2021 Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance ? Other Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The Organization does not have an internal control system designed to provide for the preparation of the Schedule. Cause: The Organization had turnover and limited staffing available. Effect: There is a reasonable possibility that the Organization would not be able to draft the Schedule that is correct without the assistance of auditors. Questioned Costs: None reported Context/Sampling: Sampling was not used. Repeat Finding from Prior Year(s): No Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Organization?s consolidated schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.