Management Alert Serious Concerns About SBA’s Control Environment and the Tracking of Performance Results in the Shuttered Venue Operators Grant Program

The Office of Inspector General (OIG) is issuing this Management Alert regarding serious concerns with the control environment and the tracking of performance results in the Shuttered Venue Operators Grant (SVOG) program requiring immediate attention and action. SBA should take immediate action to reduce or eliminate risks by strengthening existing controls and implementing internal controls to address potential misuse of federal funds. Strong controls will ensure the SVOG program can effectively help eligible small business owners and entities that have suffered economic injury because of the COVID-19 pandemic. To address serious concerns and potential deficiencies in internal controls of the Shuttered Venue Operators Grant program, we suggest the Administrator: 1. Reassess the audit risk plan to identify vulnerabilities, commensurate with the expected volume of applications and average award amount, to strengthen internal controls and reduce risk of misuse of federal funds. 2. Clearly establish 2 CFR 200 criteria for the program to ensure compliance during the implementation and oversight phases. 3. Implement required performance measures to determine the impact of program funds. 4. Ensure sufficient resources are available to implement and oversee the SVOG program.