The $16 billion Shuttered Venue Opportunity Grant (SVOG) program was created to offer much-needed COVID-19 relief to entertainment venues. The SVOG program allowed eligible venues to qualify for grants equal to 45% of their gross earned revenue, up to $10 million. Grant recipients should only use these funds for covered costs, and organizations that received a grant of over $750,000 will need to keep a closer eye on how the grant is used.
What if my SVOG is over $750,000?
The SVOG program is providing large amounts of funding, more than PPP and other relief funding, and qualifies as a federal grant counting towards the Single Audit Act threshold. Under the Single Audit Act, companies and not-for-profits that receive over $750,000 in federal funds need a Uniform Guidance audit. This previously applied only to not-for-profits, so this may be news for for-profit companies, including live event venues obtaining a SVOG.
The SBA makes it clear that they will not require audited financial statements as part of the SVOG application but indicates that Uniform Guidance rules must be followed. According to the SBA’s FAQ, in accordance with the Uniform Guidance for federal grants, all entities that expend $750,000 or more in federal funds in a fiscal year must receive a Single Audit or audited financial statement. The SBA will direct grantees that expend $750,000 or more in SVOG funds to submit a copy of the Single Audit or audited financial statement during the post-award auditing phase.
How should I prepare now for a SVOG Single Audit?
The audit documentation will need to be provided at a later date during the SBA’s post-award auditing phase. The audit will check to see that you’re utilizing the grant for its intended purposes, so once you receive your SVOG, it’s important to make sure you’re utilizing the funding for qualified expenses. Keep proper records and documentation of how the grant is being used.
Anders has a team of Audit and Assurance advisors that can help you through the audit process for your SVOG. To discuss how we can best assist you and the associated fees, contact an Anders advisor below. Stay informed on the latest pandemic relief insights in our COVID-19 Resource Center.
