Finding Text
Federal Agency: Small Business Administration
Federal Program: 59.075 Shuttered Venue Operators Grant Program
Identification Number: SBAHQ21SV012046.2
Requirement: Allowable Costs and Cost Principles
Type of Finding: Material weakness in internal control over major program; Noncompliance
Criteria: Costs claimed under a federal award program cannot be claimed under another federal program in any reporting period.
Condition: Program expenditures included costs that were claimed under another federal program in the prior fiscal year.
Cause: Management has not implemented adequate controls over the allowability of expenditures.
Effect: Inclusion of costs already claimed under another federal program may lead to federal inquiries of those charged with governance and could cause the federal agency to request a refund for those costs.
Known Questioned Costs: Our identified error of expenses claimed under another federal program was $55,867.
Context: $55,867 of costs claimed under the federal program were also claimed under the Coronavirus Relief Fund during the year ended June 30, 2021.
Recommendation: Before using federal grant funds to pay for expenditures, the Program management should ensure that these costs were not claimed under a separate grant.
Views of Responsible Official(s) and Planned Corrective Actions: See corrective action plan.