Finding Text
Federal Agency: U.S. Small Business Administration Federal Program: 59.075 Shuttered Venue Operators Program Grant Period: Year ended September 30, 2022 Criteria: 2 CFR 200.313(a)(2), 2 CFR 200.311(a), 2 CFR 200.311(b) Condition: Title to real property and equipment acquired with the federal award is held by the County per the management operating agreement. Cause: As described in Note 5 to the financial statements, the Expo manages the operations of the Expo Center on behalf of Bell County through a management agreement. Per the Expo?s management agreement, any buildings, fixtures, improvements, furniture, equipment, and tangible personal property on the Expo Center premises is the property of Bell County. The Expo maintains control of capital assets for use in the operations of the Expo. Bell County owns, insures, maintains, and repairs all capital assets on the Expo premises. Potential Effect: Instances of noncompliance with direct and material compliance requirement. Repeat Finding: No Management?s Response and Planned Corrective Action: The Expo maintains physical control of all capital assets acquired with federal awards. The Expo uses all capital assets acquired with federal awards in the operations of the Expo. The relationship with Bell County provides for high quality management of capital assets through County insurance and maintenance. The Expo believes their relationship with the County does not constitute noncompliance, as the Expo uses all capital assets in its continued operations. Responsible Person: Tim Stephens, Executive Director