The ODA based its audit plan for SVOG on the risk levels shown in the table above, the OIG’s report said. The ODA plan mandates audits of all $10 million grants and also requires recipients of grants with multiple payments to submit documentation showing how they spent the funds prior to receiving the next installment.
The ODA’s plan allows for a total of no more than 10 audits across all of the low-risk loans, the inspector general’s report said. This limitation is problematic because program officials estimate that the majority of SVOG grants will be characterized as low-risk, meaning that most grants will “be disbursed in sweeping lump sum payments with minimal requirements and expectations for post-award accountability,” the report said.
Noting that the ODA estimates the SBA will receive 15,000 applications and that the average SVOG size will be $1 million, the inspector general said that the low level of auditing and spending reviews for low-risk grants means that “the bulk of grant funds will not be subject to a reasonable degree of scrutiny.”
Asked via email about the inspector general’s report, SBA spokesperson Andrea N. Roebker responded with the following statement:
“Re: the OIG report, the Small Business Administration submitted a thorough and rigorous oversight and audit plan for the Shuttered Venue Operators Grant program. The SBA is working hard to support our nation’s entrepreneurs and small businesses, and we are committed to continuing assessments and making modifications where appropriate. Consistent with President Biden’s statements on the importance of preventing waste, fraud, and abuse for the economic relief programs, we will continue to work with the IG’s office on this and other SBA programs that are made available to the American people.”
The SVOG program was created when the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, P.L. 116-260, was signed into law in late December. The Economic Aid Act appropriated $15 billion to the program.
The American Rescue Plan Act, P.L. 117-2, which became law March 11, appropriated an additional $1.25 billion to the SVOG, bringing the program’s funding to a total of $16.25 billion. More than $16 billion of the funding is set aside for grants, with at least $2 billion reserved for eligible SVOG applicants with no more than 50 employees.
Entities eligible to apply for an SVOG include operators of live venues, live performing arts organizations, museums, and movie theaters, as well as live venue promoters, theatrical producers, and talent representatives.
The American Rescue Plan Act amended the SVOG program so entities that apply for a Paycheck Protection Program (PPP) loan after Dec. 27, 2020, can also apply for an SVOG, with the eligible entity’s SVOG to be reduced by the PPP loan amount. An interim final rule codified those changes with additional details.
For more information on the SVOG, the following resources are available from the SBA:
AICPA experts discuss the latest on the PPP and other small business aid programs during a virtual town hall held every other week. The webcasts, which provide CPE credit, are free to AICPA members and $39.99 for nonmembers. Go to the AICPA Town Hall Series webpage for more information and to register. Recordings of Town Hall events are available to view for free on AICPA TV.
The AICPA’s Paycheck Protection Program Resources page houses resources and tools produced by the AICPA to help address the economic impact of the coronavirus.
Accounting firms can prepare and process applications for the PPP on the CPA Business Funding Portal, created by the AICPA, CPA.com, and fintech partner Biz2Credit.
For more news and reporting on the coronavirus and how CPAs can handle challenges related to the outbreak, visit the JofA’s coronavirus resources page or subscribe to our email alerts for breaking PPP news.
— Jeff Drew (Jeff.Drew@aicpa-cima.com) is a JofA senior editor.
"day" - Google News
April 09, 2021 at 05:11AM
https://ift.tt/3wIgRf8
Shuttered Venue Operators Grant program closes for repairs on its opening day - Journal of Accountancy
"day" - Google News
https://ift.tt/3f7h3fo
https://ift.tt/2VYSiKW
Bagikan Berita Ini
0 Response to "Shuttered Venue Operators Grant program closes for repairs on its opening day - Journal of Accountancy"
Post a Comment