Finding 578161 (2021-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2023-11-13

AI Summary

  • Core Issue: The Museum failed to submit the required Audit Report on time, missing the September 30, 2022 deadline.
  • Impacted Requirements: This non-compliance relates to the SBA's requirement for timely reporting after expending over $750,000 in Federal Funds.
  • Recommended Follow-Up: The Museum should establish stronger controls to ensure future compliance with reporting deadlines for Federal Funds expenditures.

Finding Text

Criteria: Per the U.S. Small Business Administration Shuttered Venue Operators Grant Post-Award Frequently Asked Questions - 2022, Question 132, "the Audit Report should be completed and submitted to SBA within 9 months of the end of the Grantee’s fiscal year in which $750,000 or more of Federal Funds have been expended" for non-Federal (including non-profit) entities. Condition: The Museum's fiscal year, in which more than $750,000 of Federal Funds were expended, ended on December 31, 2021. Per the SVOG Frequently Asked Questions guidance, the Audit Report should have been completed and submitted to the SBA by September 30, 2022. The audit report was not completed until August of 2023. Cause: The Museum did not have controls in place to ensure that Audit Report was completed and submitted in compliance with the SBA requirement for the Shuttered Venue Operators Grant program. Recommendation: We recommend that the Museum implement controls that ensure that any reporting compliance requirements related to the expenditure of Federal Funds are completed on a timely basis. Views of responsible officials and planned corrective actions: The Museum concurs with the recommendation. The Museum has implemented a new procedure to ensure that any future reporting compliance requirements related to the expenditure of Federal Funds are completed on a timely basis. The Museum strives to continuously identify methods to improve internal controls.

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1718 2021-001
    Significant Deficiency
  • 1719 2021-002
    Significant Deficiency
  • 578160 2021-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.075 Shuttered Venue Operators Grant Program $4.01M