FAC Explorer

Audit 19100

FY End
2022-06-30
Total Expended
$2.11M
Findings
4
Programs
3
Organization: The Be Kind People Project Foundation (AZ)
Year: 2022 Accepted: 2023-03-30
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20375 2022-003 Material Weakness - AB
20376 2022-004 Material Weakness - P
596817 2022-003 Material Weakness - AB
596818 2022-004 Material Weakness - P

Programs

ALN Program Spent Major Findings
59.008 Disaster Assistance Loans $1.90M Yes 2
59.075 Shuttered Venue Operators Grant Program $153,008 - 0
94.006 Americorps $60,023 - 0

Contacts

Name Title Type
LM89VNP2H7M5 Marcia Meyer Auditee
6025599399 Pamela Eggert Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance hasbeen provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported in this schedule consist of the beginning of the year outstanding loan balance plus advances made on the loan during the year. The outstanding balance at June 30, 2022 was $1,901,800. A total of $500,300 in operating expenditures were made in 2022 using the loan proceeds. The remaining proceeds are held in cash as working capital for future operating needs.
Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance hasbeen provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activityof The Be Kind People Project Foundation DBA The Be Kind People Project (the Organization) under programs ofthe federal government for the year ended June 30, 2022. The information is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents onlya selected portion of the operations of the Organization, it is not intended to and does not present the financialposition, changes in net assets, or cash flows of the Organization.

Finding Details

Finding 2022-003
2022-003 Small Business Administration Financial Assistance Listing #59.008 COVID-19 Disaster Assistance Loans Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the Organization is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization did not retain the required documentation to support the review of expenditures. Cause: The Organization had turnover and limited staffing available. Effect: Lack of approval can result in expenditures that are otherwise not an allowable cost or allowable activity. Questioned Costs: None reported Context/Sampling: A nonstatistical sample of 60 transactions out of 333 total transactions were selected for testing, which accounted for $215,552 of $500,300 of federal program expenditures. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Organization?s management implement a process that allows for proper approval of expenditures to ensure that expenditures are for allowable activities and costs. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-004
2022-004 Small Business Administration Financial Assistance Listing #59.008 COVID-19 Disaster Assistance Loans Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance ? Other Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The Organization does not have an internal control system designed to provide for the preparation of the Schedule. The Schedule was not reviewed and required adjustments. Cause: The Organization had turnover and limited staffing available. Effect: There is a reasonable possibility that the Organization would not be able to draft the Schedule that is correct without the assistance of auditors. Questioned Costs: None reported Context/Sampling: Sampling was not used. Repeat Finding from Prior Year(s): No Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Organization?s schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
2022-003 Small Business Administration Financial Assistance Listing #59.008 COVID-19 Disaster Assistance Loans Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the Organization is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization did not retain the required documentation to support the review of expenditures. Cause: The Organization had turnover and limited staffing available. Effect: Lack of approval can result in expenditures that are otherwise not an allowable cost or allowable activity. Questioned Costs: None reported Context/Sampling: A nonstatistical sample of 60 transactions out of 333 total transactions were selected for testing, which accounted for $215,552 of $500,300 of federal program expenditures. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Organization?s management implement a process that allows for proper approval of expenditures to ensure that expenditures are for allowable activities and costs. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-004
2022-004 Small Business Administration Financial Assistance Listing #59.008 COVID-19 Disaster Assistance Loans Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance ? Other Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The Organization does not have an internal control system designed to provide for the preparation of the Schedule. The Schedule was not reviewed and required adjustments. Cause: The Organization had turnover and limited staffing available. Effect: There is a reasonable possibility that the Organization would not be able to draft the Schedule that is correct without the assistance of auditors. Questioned Costs: None reported Context/Sampling: Sampling was not used. Repeat Finding from Prior Year(s): No Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Organization?s schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.