FAC Explorer

Finding 51381 (2022-004)

Significant Deficiency
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2023-02-02
Audit: 45158
Organization: The Naples Players, Inc. (FL)
Auditor: Cliftonlarsonallen

AI Summary

  • Core Issue: A personal expense of $156 was improperly charged to the company credit card by the CEO, violating compliance guidelines.
  • Impacted Requirements: The use of funds should be limited to ordinary and necessary business expenses related to reopening during the pandemic.
  • Recommended Follow-Up: Implement a policy to prohibit personal charges on company credit cards and ensure any errors are recorded to a liability account for reimbursement.

Finding Text

2022 ? 004 Federal Agency: Small Business Administration Federal Program Name: Shuttered Venue Operators Grant Assistance Listing Number: 59.075 Federal Award Identification Number and Year: SBAHQ21SV005145 2022 Award Period: 7/17/2021 ? 12/31/2021 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Compliance Supplement states grantees are generally encouraged to use funds to reimburse or pay for ordinary and necessary business expenses to reopen or to keep open a business that was shuttered during the COVID-19 pandemic. Condition: One of the forty items tested was a personal expense of the CEO/Executive Artistic Director that was charged on his company credit card and recorded to an expense account of the company. Questioned costs: $156. Context: One of the forty items tested was a personal expense of the CEO/Executive Artistic Director that was charged on his company credit card and recorded to an expense account of the company. Cause: A company credit card was used for personal expenses and recorded to a company expense account by finance personnel. Effect: The company may be paying for personal expenses of its employees. Repeat Finding: No Recommendation: We recommend company credit cards are not used for personal expenses. If a company credit card is used in error, the transaction should be recorded to a liability account to ensure reimbursement from the employee. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Small Business Administration Naples Players, Inc. respectfully submits the following corrective action plan for the year ended April 30, 2022. Audit period: May 1, 2021 ? April 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS 2022-004 Shuttered Venue Operators Grant ? Assistance Listing No. 59.075 Recommendation: We recommend company credit cards are not used for personal expenses. If a company credit card is used in error, the transaction should be recorded to a liability account to ensure reimbursement from the employee. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Qualified finance staff in place to oversee and record properly. Implementation of new credit card system (divvy.com) that allows improved oversight of spending and budgets. Name(s) of the contact person(s) responsible for corrective action: Kenzie Currie Planned completion date for corrective action plan: February 2023

Categories

Questioned Costs Cash Management Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 51378 2022-001
    Material Weakness
  • 51379 2022-002
    Material Weakness
  • 51380 2022-003
    Significant Deficiency
  • 627820 2022-001
    Material Weakness
  • 627821 2022-002
    Material Weakness
  • 627822 2022-003
    Significant Deficiency
  • 627823 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.075 Shuttered Venue Operators Grant Program $818,071