SAN ANTONIO CHILDREN'S MUSEUMNon-Profit

Section II - Federal Award Findings and Questioned Costs 2021?001 Period of Performance Information on Federal Program: Program: Shuttered Venue Operators Grant Assistance Listing Number: 59.075 Award Number: SBAHQ21SVO08075 Compliance Requirement: Period of Performance Type of Finding: Significant Deficiency in Internal Control, Noncompliance Criteria or Specific Requirement: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award?s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308, 200.309, and 200.403(h)). Condition: During our testing of disbursements, we noted one of the 40 expenditures sampled was not incurred within the period of performance. Upon further review of the population, 54 transactions totaling to $5,496 were identified as having been incurred prior to the beginning of the period of performance of March 1, 2020. Questioned Costs: There are no questioned costs noted related to this finding. Context: We tested a sample of 40 items and found one exception as noted in the condition. Upon further review of the population, 54 transactions totaling to $5,496 were identified as having been incurred prior to the beginning of the period of performance of March 1, 2020. Effect: The failure to detect the expenditures outside the period of performance resulted in a control failure. Failure to adhere to compliance requirements may result in costs charged to the program in error. Cause: The Museum?s policies and procedures were not appropriately designed to ensure the date of the underlying transaction charged to the credit card was reviewed to determine if the transaction was incurred within the period of performance. Recommendation: We recommend that the Museum implement a policy to record credit card charges on the date of the individual transactions and not the date of the credit card statement to ensure those expenses are recorded in the proper period. View of Responsible Officials: Management will implement an internal review process for federal grant reporting. This process will ensure reported expenses match the period of performance and will include a review and approval process.