Finding 577824 (2022-001)

Federal Agency: U.S. Small Business Administration Federal Program Name: Shuttered Venue Operators Grant Assistance Listing Number: 59.075 Award Period: July 2, 2021 – December 31, 2021 Type of Finding: • Other Matters Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. Eugene O’Neill Memorial Theater Center, Inc. should have internal controls designed to ensure compliance with those provisions. Condition: During our testing of expenditures, we noted Eugene O’Neill Memorial Theater Center, Inc. recorded grant revenue in fiscal year 2022 for expenditures related to fiscal year 2021. This revenue should have been reported in fiscal year 2021 when expenses were incurred. There were not adequate internal controls designed to ensure costs were properly charged to awards within the proper period. Questioned costs: None noted Context: Eugene O’Neill Memorial Theater Center, Inc. was not properly considering the period in which expense was incurred when recording grant revenue. Cause: Exception was caused due to inadequate review over period of performance compliance. Effect: Amounts are reported as revenue in incorrect fiscal year on the financial statements. The expenses were properly charged to the grant and occurred within the grant period. Repeat Finding: No Recommendation: We recommend Eugene O’Neill Memorial Theater Center, Inc. design controls to ensure an adequate review process is in place to review the period of costs incurred to ensure costs are recorded within the financial statements as grant revenue in the proper period. Views of Responsible Officials: Management concurs with the finding. See separate corrective action plan.