The ODA based its audit plan for SVOG on the risk levels given in the table above, according to the OIG report. The ODA plan requires audits of all $ 10 million grants and requires recipients of multi-payment grants to submit documentation showing how they spent the funds before receiving the next installment.
The ODA’s plan calls for no more than 10 total checks for all low-risk loans, according to the Inspector General’s report. This limitation is problematic as program officials estimate that the majority of SVOG grants are rated as low risk, which means that most grants are “paid in flat-rate lump sums with minimal post-award accountability requirements and expectations,” it said in the report.
The Inspector General noted that the ODA estimates that the SBA will receive 15,000 applications and that the average SVOG size will be $ 1 million under a reasonable level of scrutiny. “
The SBA spokeswoman Andrea N. Roebker was asked by email about the report of the inspector general and replied with the following explanation:
“Subject: The OIG report, the Small Business Administration, presented a thorough and rigorous monitoring and audit plan for the Shuttered Venue Operators Grant program. The SBA is working hard to support our country’s entrepreneurs and small businesses and we are committed to continuing the assessments and making changes as necessary. Consistent with what President Biden said about the importance of preventing waste, fraud and abuse in economic aid programs, we will continue to work with the IG office on this and other SBA programs that will be made available to the American people. “
The SVOG program came into being when the Law on Economic Aid to Hardly Affected Small Businesses, Nonprofits and Venues, PL 116-260, was passed signed into law End of December. The Economic Aid Act allocated $ 15 billion to the program.
The American Rescue Plan ActPL 117-2, which went into effect March 11, provided the SVOG with an additional $ 1.25 billion, bringing the total program funding to $ 16.25 billion. More than $ 16 billion of the funds are earmarked for grants, with a minimum of $ 2 billion reserved for eligible SVOG applicants with no more than 50 employees.
Entities eligible to apply for an SVOG include live venue operators, live performing arts organizations, museums and cinemas, and live venue organizers, theater producers and talent representatives.
The American Rescue Plan Act changed the SVOG program so that companies applying for a Paycheck Protection Program (PPP) loan after December 27, 2020 can also apply for an SVOG, with the eligible company’s SVOG at PPP loan amount needs to be reduced. A provisional final rule codified these changes with additional details.
For more information on SVOG, see the following resources at the SBA:
AICPA experts discuss the latest information on PPP and other small business aid programs during a bi-weekly virtual town hall. The webcasts that offer CPE credit are free for AICPA members and $ 39.99 for non-members. Go to AICPA Town Hall Series Website for further information and registration. Recordings of town hall events can be viewed for free on AICPA TV.
The AICPA Page Resources for the Paycheck Protection Program houses resources and tools created by the AICPA to help manage the economic impact of the coronavirus.
Audit firms can prepare and process applications for the PPP on the PPP CPA Business Funding Portal, created by AICPA, CPA.com and fintech partner Biz2Credit.
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– – Jeff Drew (([email protected]) is a YofA Editor-in-chief.