Shuttered Venue Operators Grant Program

High-priority program

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Program level Payment Integrity results

Sponsoring agency: Small Business Administration

View on Federal Program Inventory

PROGRAM METRICS

Did not report

in FY 2024

PROGRAM METRICS

$14,605 M

in FY 2025 outlays, with a

31.1%

payment accuracy rate

  • Improper payment estimates over time
    View as:

    Chart toggle amounts:
    Proper payments
    Overpayment
    Underpayment
    Technically improper
    Unknown

Payment Integrity results

Additional information

The SVOG program was created as a temporary relief program in response to the COVID-19 pandemic, with most disbursements occurring within the first year. Following guidance from OMB and the limitations outlined in Appendix C, which is written for programs with multiple years of disbursements, the SBA is committed to continuing working with the OMB to perform an improper payment review for the total disbursements made under the SVOG program. SBA has begun testing a sample population from the SVOG program total program outlays to estimate the rate of improper payments. Budget permitting, the SBA expects to have the improper payment estimates for the SVOG program available in FY 2025.

Unknown Payment Details

Evaluation of corrective actions

Future payment integrity outlook

Additional programmatic information

  • FY 2025 improper payment estimates

    Chart legend and breakdown

    Payment accuracy rate

    Improper payment rate

    Unknown payment rate


    Sampling & estimation methodology details

    Sampling timeframe:

    04/2021 - 03/2024


    Confidence interval:

    95% to <100%


    Margin of error:

    +/-3.0

Causes

The predominant root cause identified for the Shuttered Venue Operators Grant (SVOG) program is Statutory Requirements of Program Were Not Met.  The disbursements categorized under this root cause pertain to instances where the Principal Business Activity did not align with the established statutory guidelines.  Furthermore, the completion of closeout requirements was not executed in accordance with statutory provisions. The second root cause identified relates to the Failure to Access Data/Information.  Disbursements within this category resulted from the SBA's inability to obtain critical documentation when assessing eligibility, as well as accessing essential documents required for calculating revenue and/or grant award amounts.   The root causes of the “Unknown Payment” were identified as: (1) A lack or insufficiency of eligibility documentation to determine whether the payment was proper or improper, (2) The program did not complete the required cost compliance monitoring, which would have identified if the payment was utilized according to statutory requirements. (3) The closeout requirement for the grant has not been fulfilled.

Overpayment root cause Overpayment amount
Amount of overpayments within the agency's control $4,484.64 M
Amount of overpayments outside the agency's control $0.0 M
Amount of overpayments that occurred because the data/information needed to validate payment accuracy prior to making a payment does not exist $0.0 M
Amount of overpayments that occurred because of an inability to access the data/information needed to validate payment accuracy prior to making a payment $0.0 M
Amount of overpayments that occurred because of a failure to access data/information needed to validate payment accuracy prior to making a payment $4,484.64 M

Underpayment root cause Underpayment amount
Amount of underpayments $20.63 M
The amount of underpayments that occurred because the data/information needed to validate payment accuracy prior to making a payment does not exist $0.0 M
The amount of underpayments that occurred because of an inability to access the data/information needed to validate payment accuracy prior to making a payment $0.0 M
The amount of underpayments that occurred because of a failure to access data/information needed to validate payment accuracy prior to making a payment $20.63 M

The amount of improper payments that were paid to the right recipient for the correct amount but were considered technically improper because of failure to follow statute or regulation $1,321.03 M

The amount that could either be proper or improper but the agency is unable to determine whether it was proper or improper as a result of insufficient or lack of documentation $4,242.69 M

Prevention

To mitigate future improper payments and to prevent overpayments, the SBA has implemented several corrective actions. These include training staff to address procedural inconsistencies and gather the necessary eligibility documentation to ensure compliance with policy requirements. Additionally, the SBA has identified deficiencies that necessitate updates to policies, regulations, or standard operating procedures. Any overpayments identified during the improper payments reviews will be subject to recovery efforts, with decisions made on a case-by-case basis depending on the specifics of each improper payment.
The SBA's strategy for addressing unknown payments focuses on implementing corrective actions that efficiently prioritize resources while maintaining program integrity. These actions will involve obtaining the necessary eligibility documentation, completing cost compliance monitoring events and finalizing the closeout process.
The SVOG Program is currently in the closeout phase, as the last disbursement occurred in December 2022, and there will be no future disbursements. Therefore, the completion of corrective actions is projected to be finished by the end of FY26.
The planned actions in the corrective action plan directly address the root causes of the improper payments and unknown payments identified in our review. We have trained the staff to ensure a complete understanding of compliance requirements. Additionally, the SBA has identified deficiencies that require updates to policies, regulations, or standard operating procedures. Currently, the SVOG Program is in the closeout phase, with the last disbursement occurring in December 2022. We are reviewing files that have compliance and overpayment issues to initiate recovery efforts. The severity and rate of the root causes demand robust responses. By aligning our actions with the focus on grantee compliance with statutory and regulatory requirements, we aim to enhance the program's recovery efforts concerning improper payments. This targeted approach not only seeks to correct past errors but also aims to prevent future occurrences, ultimately strengthening the payment integrity of our program.

The implementation of corrective actions within the Shuttered Venue Operators Grant (SVOG) Program office is a structured and strategic process focused on addressing the root causes of improper and unknown payments. The program office prioritizes corrective actions based on the identified deficiencies, with particular emphasis on eligibility determination and documentation gaps. To address these issues, the program office conducts targeted training for staff to correct procedural errors and ensure the collection of eligibility documentation in accordance with established policy. In addition, policies and procedures are reviewed and updated where needed to clarify requirements. When overpayment are identified during post-award reviews, the agency initiates recovery actions on a case-by-case basis, demonstrating effective implantation and prioritization of corrective actions.
Corrective actions are focused on mitigating the causes of improper and unknown payments and support program integrity. To reduce Unknown Payments, the SVOG Program emphasizes the collection and validation of eligibility documentation, monitoring of allowable expenditures, and completion of the closeout process. The SVOG Program has entered its closeout phase, with the final disbursement issued in December 2022, and no further payments will be made. As a result, corrective actions are now focused on review, recovery, and closeout activities, which are expected to further reduce Improper Payments and Unknown Payments through the anticipated completion of corrective actions by the end of Fiscal Year 2026.

Payment type Mitigation strategies taken Mitigation strategies planned
Overpayments Cross Enterprise Sharing, Training Training
Underpayments Training Training
Technically improper payments Training Training
Unknown payments Change Process,Training Change Process,Training

Eligibility element/information needed Description of the eligbility element/information
Financial The financial position or status of a beneficiary, recipient, or their family

Additional information

0 is entered as reduction target because the program was ended.

Reduction target

0 %

The Shuttered Venue Operators Grant (SVOG) Program has established sufficient internal controls, information systems, and closeout processes to manage improper and unknown payments during its current closeout phase, with no further disbursement issued after December 2022. Existing controls, combined with targeted staffing and recovery mechanisms, allow the agency to identify and pursue overpayment without incurring disproportionate costs. In instances where overpayments are identified, the agency will initiate recovery efforts. While the program has established internal controls, the effectiveness of these measures depends significantly on the availability of human capital and on further expenditures. It is essential to recognize that the costs associated with implementing additional initiatives to reduce improper payments may be justified by the potential benefits of both cost savings and the prevention of improper payments. By allocating resources to enhance oversight and improve systems, the program can strengthen its capacity to recover funds and minimize future discrepancies. This proactive approach not only safeguards financial resources but also fosters accountability and operational efficiency within the organization's processes.

In the most recent budget submission, the agency requested resources necessary to support workforce capacity and operational activities required to maintain payment integrity of the SVOG Program during recoupment and closeout. These resources are intended to support staff responsible for post-award reviews, improper payment identification, recovery efforts, and closeout activities. Despite overall resource constraints in fiscal year 2025, the program prioritized available staffing and funding to sustain payment integrity functions and ensure compliance through the recoupment and closeout phase.

Although the Shuttered Venue Operations Grant (SVOG) Program has completed its final disbursement as of December 2022, accountability for payment integrity continues during the closeout phase through established oversight and quality assurance processes. The program monitors the quality and accuracy of all awards to ensure compliance with applicable statutory, regulatory, and program requirements. Supervisory review and quality assurance activities are used to assess documentation sufficiency, adherence to policy, and the proper administration of award funds. These processes support the identification and resolution of issues discovered during post-award review activities. When discrepancies are identified, the program takes appropriate actions in accordance with established procedures. This approach maintains accountability and program integrity.

$1,341.65 M