Finding 581996 (2022-001)

Special Provisions of the Agreement Were Not Met Economic Injury Disaster Loan - Assistance Listing No. 59.008; Award Period: January 1, 2022 - December 31, 2022. Condition: Significant deficiency - The Organization did not comply with certain special tests and provisions as identified in the disaster assistance loan agreement. Criteria : The disaster assistance loan program requires the Organization to comply with certain provisions of the loan program, including obtaining and itemizing receipts and contracts for all loan funds spent and submitting to the SBA such itemization together with copies of the receipts, providing the SBA internal financial statements within 90 days of year-end, and posting SBA Form 722, Equal Opportunity Poster, where it will be clearly visible to employees, applicants for employment, and the general public. Questioned costs : None. Context : The Organization did not obtain and itemize receipts and contracts for all loan funds spent and submit to the SBA such itemization together with copies of the receipts; provide the SBA with internal financial statements within 90 days of year-end; or post SBA Form 722, Equal Opportunity Poster, where it is clearly visible to employees, applicants for employment, and the general public. Cause : There was turnover within Organization management after the disaster assistance loan was received, and other members of management were not provided with the training to ensure that program requirements were met. Effect : Program compliance requirements are at risk of not being met. Recommendation : The Organization should review the terms of the disaster assistance loan and ensure that all individuals responsible for carrying out the terms of the program are provided with applicable training to ensure that the program requirements are met. View of Responsible Official and Planned Corrective Action : Management agrees with the finding. See corrective action plan.