Finding Text
Small Business Administration Program Name: Shuttered Venue Operators Grant (SVOG) CFDA No(s) 59.075 Grant Number: SBAHQ21SV001236.2 Finding 2022-003 SIGNIFICANT DEFICIENCY Allowable Cost / Cost Principles and Allowable Activity Criteria: Uniform guidance requires a Single Audit for organizations with over $750,000 of expenditures of federal awards and preparation of a Schedule of Expenditures of Federal Awards. Condition: The Theatre was not aware of the Single Audit requirement for fiscal 2022. Context: When the Auditor initiated the engagement it became aware of the SVOG and inquired if the Theatre was aware that a Single Audit would be required if grant expenditures exceeded $750,000 in the year. The Theatre was unaware of the Single Audit requirement and the required preparation of a Schedule of Expenditures of Federal Awards. Cause: Not having previous experience with federal awards of this magnitude The Theatre lacked knowledge relating to federal award programs and specific requirements for receiving and reporting federal funds. Effect: The Theatre was not prepared for a single audit and needed assistance in understanding the requirements. Recommendation: We recommend that the Theatre gain knowledge regarding the requirements involved when receiving federal grant funds so that if they expend a sufficient amount to trigger a single audit again, they will be prepared. Questioned Costs: None Management?s Response: We agree with the finding. The Theatre will incorporate federal grant compliance training for appropriate personnel.