On September 19, 2001, the OIG issued Audit Report 1-17, Audit of the Vermont Women’s Business Center. Trinity College, under the terms of a five-year cooperative agreement with the SBA, received $150,000 in federal funds for the Vermont Women’s Business Center’s first project year. The college was approved to receive $140,000 in federal funds for the second project year. Based on Trinity’s expected closure, the SBA approved the assumption of the award by the owners of the college, the Sisters of Mercy. Their application for third year funding is pending SBA action.
The audit objectives were to determine if Trinity (1) complied with the financial management terms and conditions of the award, (2) met statutory matching requirements, and (3) reported only allowable costs and in-kind contributions. For year one, based on accounting record transaction descriptions that appeared questionable, the OIG judgmentally selected and reviewed supporting documentation for 50 expenditure transactions totaling approximately $19,873, or 12 percent, of total year one expenditures. In addition, the OIG reviewed supporting documentation for the total reported in-kind contributions of $39,778. The OIG did not review a sample of expenditures and in-kind contributions for year two.
The OIG determined that Trinity (1) did not comply with some of the financial management terms and conditions of the award, (2) under-matched cash by $24,900 in year one, (3) reported $31,655 of unallowable costs and in-kind contributions in year one, and (4) submitted inaccurate and inconsistent financial information to the SBA. As a result, the OIG recommended remittance of $36,185 to the SBA. These issues may represent material non-compliance with terms and conditions of the award, and the SBA should determine if suspension of the award is appropriate in accordance with OMB Circular A-110.