The Shuttered Venue Operators Grant (SVOG) program was created by The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act from the COVID-19 relief bill. The program received $15 billion from this act and an additional $1.25 billion from the American Rescue Plan Act.
The SVOG program’s mission is to support the ongoing operations of eligible live venues and operators, live venue promoters, theatrical producers, talent representatives, live performing arts organization operators, museums, and motion picture theaters during the uncertain economic conditions caused by the COVID-19 pandemic.
Every Monday the SBA issues its latest report on the SVOG program and its most recent awardee data. According to this report, $14.16 billion has been awarded and $14.08 billion has been disbursed. Here is an overview of the SVOG program as of the middle of March:
Single Audit Requirement
Grant recipients must maintain documentation demonstrating their compliance with eligibility and other requirements of the SVOG program. They must also retain employment records for four years following their receipt of the grant and retain all other records for three years.
Grantees are not required to repay the funds if they are used for eligible costs incurred between March 1, 2020, and December 31, 2021, or June 30, 2022, if the entity received Supplemental Phase SVOG funds. Grantees have one year from the date their awards are disbursed by the SBA to use the grant funds.
Any not-for-profit that expends more than $750,000 in federal funding in one fiscal year will be required to submit a Single Audit. For-profit entities receiving the SVOG grant and expending more than $750,000 in federal funding in one fiscal year will have the option of either providing a Single Audit or submitting an audited financial statement for that fiscal year. A
A Single Audit is an audit of the non-federal entity’s financial statements and a compliance audit, which is performed in accordance with Uniform Grant Guidance.
The consequences of missing single audit reporting deadlines or being noncompliant with program requirements can lead to:
- Grant amounts being withheld or subject to potential take-back
- Suspension or termination of the program in its entirety
- Other legal actions
Organizations that are habitually noncompliant may be prevented from receiving future federal funding. Finally, the results of a single audit must be submitted to the federal government in a public database. So, any noncompliance matters noted in a single audi — including internal control deficiencies—are available and accessible to the general public.
RINA professionals are experts in Single Audits, and we will continue to keep you updated on what is expected in a Single Audit for this program. Meanwhile, if you have questions about preparing for a Single Audit or whether the requirement applies to you, please contact a member of our audit team.