Finding Text
Finding No. 2022-001 Allowable Costs/Activities Allowed Fiscal Year: 2021-2022 Criteria Shuttered Venue Operators Grant (SVOG) was structured as grant program and therefore all recipients must implement their awards and spend funds consistent with the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. However, when the program statute allows the use of SVOG award funds for a specific use beyond the scope of uses outlined in the Uniform Guidance, that use is allowed. All Shuttered Venue Operators Grant Program award funds expended must be eligible, allowable, allocable, and reasonable. Allowable costs are those costs that align with the statute and other basic frameworks. Fundraising is not an allowable use of SVOG funds and is further prohibited in line with 2 CFR 200.442. Costs of contributions and donations, including cash, property and services from non-Federal entity to other entities are also unallowable under 2 CFR 200.434. Condition The Organization used SVOG funds as contributions to other not-for-profit organizations. Questioned Costs $900 Cause The Organization did not comply with cost principles under 2 CFR Part 200, Subpart E section 200.434 Contributions and donations. Effect This finding falls under the audit area of Allowable costs and Activities Allowed. Costs that are not allowable under the grant were charged to the federal program. Material noncompliance for this assertion has been determined as an error rate greater than $61,000, individually and/or in aggregate. In evaluating the finding, auditors determined that the finding does not rise to the level of a significant deficiency or a material weakness. Recommendation We recommend that the Organization strengthen procedures to ensure they are following compliance requirements of Allowable costs/Activities allowed under the Uniform Guidance.