Finding Text
Finding 2022-001 – Significant Deficiency
Assistance Listing: 59.075, Shuttered Venue Operators Grant Program
Federal Grantor: U.S. Small Business Administrator
Compliance Requirement: Other
Condition: Entity currently uses MIP Fund Accounting Software to account for all
transactions. However, within the Entity’s accounting system, the entity has not set up projects,
classes or funds to separately account for federal funds. The Entity provided us with a listing of costs
in excel which was used to populate the SEFA at December 31, 2022.
Criteria: Section 202.302 states in part, “…. the state's and the other non-Federal entity's financial
management systems, including records documenting compliance with Federal statutes, regulations,
and the terms and conditions of the Federal award, must be sufficient to permit the preparation of
reports required by general and program-specific terms and conditions; and the tracing of funds to a
level of expenditures adequate to establish that such funds have been used according to the Federal
statutes, regulations, and the terms and conditions of the Federal award.”
Cause: Management has not implemented internal controls requiring a separate accounting of federal
funds within the accounting system
Effect: By not maintaining a separate accounting of federal funds, the amounts reported as federal
funds vs non federal funds cannot be clearing identified and reported at year end.
Recommendation: The entity should use the accounting system to track federal expenses claimed
separately in the general ledger.
Recommendation: We recommend that the Organization implement written policies and procedures
requiring all government food and communities be recorded in the accounting records on a monthly
or quarterly basis and that these items be recorded by cost center.
Management’s response and Corrective Action Plan: The Correction Action Plan is reported
separately on page 41 of this audit report.