Finding Text
2022-004 ? Special Tests and Provisions Information on the Federal Program: U.S. Small Business Administration Assistance Listing Number: 59.008 Assistance Listing Name: Economic Injury Disaster Loan Criteria ? Per the Economic Injury Disaster Loan agreement, the Center is required to furnish to the Small Business Administration, not later than 3 months following the expiration of the Borrower?s fiscal year and in such forms as SBA may require, Borrower?s financial statements. Condition ? During the testing of special test and provisions, we noted an exception relating to the ability of management to provide support for sending the SBA the financial statements within 3 months following August 31, 2022. Cause ? Policies and procedures were not appropriately adhered to in certain instances to ensure that supporting documentation was maintained to evidence providing SBA the required financial statements subsequent to fiscal year end, as required by agreement. Effect ? An ineffective control system related to ensuring all required support is provided to the SBA on a timely basis can lead to noncompliance with law and regulations and possible loss of funding for the related program. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the Center?s major program. The nature of this finding is detailed in the condition section above. Repeat Finding: This is not a repeat finding. Recommendation ? We recommend the Center develop a policy and procedures to ensure that all required special tests and provisions specified by the SBA are adopted and followed. We further recommend that management review its policies and procedures on a regular and ongoing basis related to federal awards to ensure they are appropriate given the various awards. Views of Responsible Officials ? Beck Center for the Arts concurs with the finding and the recommendation. The finance/accounting department will fully review its controls and procedures for identifying and complying with special tests and provisions associated with various awards with guidance and approval from the Audit Committee. The Center?s corrective action plan is described in Managements Corrective Action Plan included at page 42 of this reporting package.