In this third installment of YPTC’s Staying Afloat: Arts & Culture Series Justine Townsend covers the financial documents required for all SVOG applicants.

Important Reminders:

  • The SVOG application portal opens on April 8th!
  • Your SVOG grant will be reduced by any PPP loan amounts received on or after 12/27/20. If applying for both a PPP loan and an SVO grant, make sure your PPP loan is issued before applying for the SVO grant.
  • PPP loan application has been extended to 5/31/21
  • As the SBA has not yet released the application, we utilized the Preliminary Application Checklist for the tips in this installment – https://www.sba.gov/document/support-shuttered-venue-operators-grant-preliminary-application-checklist.

Copies of these 2019 and 2020 financial documents are required for ALL applicants:

  1. Tax return(s)
    1. For most nonprofits, this means your Form 990
    2. Include the Form 990-T, if applicable
    3. Provide a copy of your 2019 return
    4. Provide a copy of your 2020 return, if filed
    5. Otherwise, provide when filed
  2. Quarterly income statements
    1. Must be SIGNED by a primary officer
    2. For nonprofits, we recommend the Board Treasurer or Executive Director
    3. Provide all 4 quarters for 2020, and all quarters in operation for 2019
    4. Tips
      1. Provide all sources of revenue and expenses
      2. Report expenses as your organization normally would on financial statements
      3. Segregate earned revenue from contributed revenue
  3. Audited financial statements
    1. Copy of your entity’s most recent audited financial statement
    2. This will most likely be your 2019 audit
    3. Make sure that the quarterly income statements tie back to the audit and the tax return(s) provided
    4. Be prepared to provide a reconciliation if they don’t!
  4. Single audit, if required
    1. A single audit applies to entities that expend $750K or more in federal funds in a fiscal year
    2. A single audit is a compliance audit of the federal awards
    3. It reports how the grant was managed and whether federal rules were followed
    4. Provide a copy of the single audit, or a website link to it
    5. Good to know:
      1. PPP loans are not subject to a single audit
      2. SVO grants are subject to a single audit
  5. Indirect Cost Rate Agreement
    1. A copy of any current approved rate and indirect cost rate agreement with your entity’s cognizant agency
    2. For nonprofits, the cognizant agency is the federal agency which provides the most federal grant funding
    3. If a 10% de minimis rate was used, a statement to that effect
  6. Payroll statements covering February 29, 2020
    1. The SBA is looking for employees on payroll as of 2/29
    2. Include any payroll reports that include 2/29/20 in the pay period
    3. Since not all employees are paid on the same schedule, your entity may have to provide more than one report
    4. Why is the SBA asking for this? It helps prove your entity was in operation as of 2/29

Let’s review: Here are the financial documents required for all SVOG applicants:

  1. Tax return(s)
  2. Quarterly income statements
  3. Audited financial statements
  4. Single audit, if required
  5. Indirect Cost Rate Agreement
  6. Payroll statements covering February 29, 2020

Once you have them all you are well on your way to filing a completed SVO grant application!

Resources:

YPTC’s News and Resources page

Arts and Culture Spotlight Series installments

SBA Shuttered Venue Operators Grant (SVOG) information