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.