Audit 315633

FY End

2023-08-31

Total Expended

$6.06M

Findings

2

Programs

2

Organization: George J. and Hilda Meyer Foundation, Inc. (MO)

Year: 2023 Accepted: 2024-07-22

Auditor: Cla LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
479138	2023-001	Significant Deficiency	Yes	N
1055580	2023-001	Significant Deficiency	Yes	N

ALN	Program	Spent	Major	Findings
10.766	Community Facilities Loans and Grants	$6.05M	Yes	1
93.498	Provider Relief Fund	$14,546	-	0

Contacts

Name	Title	Type
MKYZRWQKJ2T9	Tiffany Goetz	Auditee
6605844224	Christi Search	Auditor
No contacts on file

Notes to SEFA

Title: Reconciliation of SEFA and Financial Statements Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of George J. and Hilda Meyer Foundation, Inc. (the Foundation) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the applicable requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule of expenditures of federal awards presents only a selected portion of the operations of the Foundation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Foundation. NOTE 2 SIGNIFICANT ACCOUNTING POLICIES No funds were identified as having been provided to subrecipients by the Foundation and accordingly, no funds identified in the schedule of expenditures of federal awards are attributable to subrecipient entities. There were no federal awards expended for noncash assistance or insurance. The Foundation has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The Organization has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. The SEFA includes Provider Relief Funds of $14,546 that were received in Period 4 in accordance with the requirements of the compliance supplement for assistance listing number 93.498 as shown in the table below. Providers Relief Funds Received: Period 1 $331,939 Period 2 143,882 Period 3 - Period 4 14,546 Total Received $490,367 Revenue Recognized from Provider Relief Funds: Year Ended August 31, 2020 $146,928 Year Ended August 31, 2021 295,854 Year Ended August 31, 2022 47,585 Year Ended August 31, 2023 - $490,367

Title: Long-Term Debt Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of George J. and Hilda Meyer Foundation, Inc. (the Foundation) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the applicable requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule of expenditures of federal awards presents only a selected portion of the operations of the Foundation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Foundation. NOTE 2 SIGNIFICANT ACCOUNTING POLICIES No funds were identified as having been provided to subrecipients by the Foundation and accordingly, no funds identified in the schedule of expenditures of federal awards are attributable to subrecipient entities. There were no federal awards expended for noncash assistance or insurance. The Foundation has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The Organization has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. The SEFA includes the communities facilities loans and grants amount as of the beginning of the year of $6,047,918 with no additional draw during the year, resulting in a balance of $6,047,918 that is recorded on the SEFA. The outstanding debt balance at August 31, 2023 is $5,851,506.

Finding Details

Finding 2023-001

Federal agency: U.S. Department of Agriculture Federal program title: Communities Facilities Loans & Grants Assistance Listing Number: 10.766 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: September 1, 2022 through August 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Compliance Requirement: Special Provisions Criteria or specific requirement: The Foundation has certain reserves with minimum funding requirements related to their USDA loan. Condition: The Foundation's internal controls over compliance were not effective. The calculation for the Replacement and Extension Account was not done so they were not able to determine if the account was properly funded. Questioned costs: None Context: During the audit, it was discovered that the Foundation was not calculating the required funding level for the Replacement and Extension Account nor funding the reserves in accordance with the Security Agreement. The reserve accounts were underfunded by approximately $61,000 for the year ended August 31, 2023. Cause: Management oversight. Effect: The Foundation could be out of compliance with the covenants of the Loan and Security Agreement. Repeat finding: N/A Recommendation: We recommend the Foundation design controls to ensure that calculation is completed in accordance with the loan agreement and funded in full prior to the end of each fiscal year. Views of responsible officials: There is no disagreement with the audit finding. A waiver of the funding requirement was obtained for the year ended August 31, 2023. Management will incorporate the funding calculation for the Replacement and Extension Account into the reconciliations to be performed and reevaluated monthly.

Finding 2023-001

Federal agency: U.S. Department of Agriculture Federal program title: Communities Facilities Loans & Grants Assistance Listing Number: 10.766 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: September 1, 2022 through August 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Compliance Requirement: Special Provisions Criteria or specific requirement: The Foundation has certain reserves with minimum funding requirements related to their USDA loan. Condition: The Foundation's internal controls over compliance were not effective. The calculation for the Replacement and Extension Account was not done so they were not able to determine if the account was properly funded. Questioned costs: None Context: During the audit, it was discovered that the Foundation was not calculating the required funding level for the Replacement and Extension Account nor funding the reserves in accordance with the Security Agreement. The reserve accounts were underfunded by approximately $61,000 for the year ended August 31, 2023. Cause: Management oversight. Effect: The Foundation could be out of compliance with the covenants of the Loan and Security Agreement. Repeat finding: N/A Recommendation: We recommend the Foundation design controls to ensure that calculation is completed in accordance with the loan agreement and funded in full prior to the end of each fiscal year. Views of responsible officials: There is no disagreement with the audit finding. A waiver of the funding requirement was obtained for the year ended August 31, 2023. Management will incorporate the funding calculation for the Replacement and Extension Account into the reconciliations to be performed and reevaluated monthly.