Audit 32019

Federal Agency: U.S. Small Business Administration (SBA) Federal Program Name: Economic Injury Disaster Loan Assistance Listing Number: 59.008 Award Period: January 31, 2020 and continuing thereafter Type of Finding: Significant Deficiency in Internal Control Other Matter Criteria or specific requirement: Per the loan agreement, for loan amounts greater than $25,000, within 12 months from the date of this Loan Authorization and Agreement the borrower will provide proof of an active and in effect hazard insurance policy including fire, lightning, and extended coverage on all items used to secure this loan to at least 80% of the insurable value. Per the loan agreement, the borrower and any business entity guarantor shall, within 180 days of receiving any disbursement of this Loan, submit the appropriate SBA Certificate and/or Resolution to the U.S. Small Business Administration, Office of Disaster Assistance, 14925 Kingsport Rd, Fort Worth, TX. 76155. Per the loan agreement, the borrower will furnish to SBA, not later than 3 months following the expiration of borrower's fiscal year and in such form as SBA may require, borrower's financial statements. Condition: During our testing, we noted the School did not have adequate internal controls and records designed to ensure that the School complied with the terms of the SBA loan agreement. Questioned costs: None. Context: The School did not have records to ensure compliance with certain terms of the SBA loan agreement. Cause: There are no procedures in place to ensure that the School is in compliance with the terms of the loan agreement. Effect: Effect is that the School is not in compliance with the terms of the loan agreement. Repeat Finding: The finding is not a repeat of a finding in the immediate prior year. Recommendation: The School should implement procedures to ensure that the records are maintained for sufficient audit trail that the School is in compliance with the terms of the loan agreement. Views of responsible officials: There is no disagreement with the audit finding.

2022 -002 Eligibility Loan Application Federal Agency: U.S. Small Business Administration Federal Program Name: Economic Injury Disaster Loan Assistance Listing Number: 59.008 Award Period: January 31, 2020 and continuing thereafter Type of Finding: Significant Deficiency in Internal Control Other Matter Criteria or specific requirement: The loan application requested for the gross revenues for the twelve month prior to the date of the disaster (January 31, 2020) and the non-profit cost of operation for the twelve month prior to the date of the disaster (January 31, 2020). Condition: The loan application was completed with accurate information except for the gross revenues for the twelve month prior to the date of the disaster (January 31, 2020) and the non-profit cost of operation for the twelve month prior to the date of the disaster. The School used the period from 7/1/2019 through 1/31/2020 which they were able to support. Questioned costs: None. Context: The School did not have adequate internal controls designed to ensure that the information in the loan application was accurate. Cause: There are no procedures in place to ensure that the School is in compliance with the terms of the loan agreement. Effect: Effect is that the School submitted the loan application which contained errors.. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The School should implement procedures to ensure that information in the loan application is accurate. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Small Business Administration (SBA) Federal Program Name: Economic Injury Disaster Loan Assistance Listing Number: 59.008 Award Period: January 31, 2020 and continuing thereafter Type of Finding: Significant Deficiency in Internal Control Other Matter Criteria or specific requirement: Per the loan agreement, for loan amounts greater than $25,000, within 12 months from the date of this Loan Authorization and Agreement the borrower will provide proof of an active and in effect hazard insurance policy including fire, lightning, and extended coverage on all items used to secure this loan to at least 80% of the insurable value. Per the loan agreement, the borrower and any business entity guarantor shall, within 180 days of receiving any disbursement of this Loan, submit the appropriate SBA Certificate and/or Resolution to the U.S. Small Business Administration, Office of Disaster Assistance, 14925 Kingsport Rd, Fort Worth, TX. 76155. Per the loan agreement, the borrower will furnish to SBA, not later than 3 months following the expiration of borrower's fiscal year and in such form as SBA may require, borrower's financial statements. Condition: During our testing, we noted the School did not have adequate internal controls and records designed to ensure that the School complied with the terms of the SBA loan agreement. Questioned costs: None. Context: The School did not have records to ensure compliance with certain terms of the SBA loan agreement. Cause: There are no procedures in place to ensure that the School is in compliance with the terms of the loan agreement. Effect: Effect is that the School is not in compliance with the terms of the loan agreement. Repeat Finding: The finding is not a repeat of a finding in the immediate prior year. Recommendation: The School should implement procedures to ensure that the records are maintained for sufficient audit trail that the School is in compliance with the terms of the loan agreement. Views of responsible officials: There is no disagreement with the audit finding.

2022 -002 Eligibility Loan Application Federal Agency: U.S. Small Business Administration Federal Program Name: Economic Injury Disaster Loan Assistance Listing Number: 59.008 Award Period: January 31, 2020 and continuing thereafter Type of Finding: Significant Deficiency in Internal Control Other Matter Criteria or specific requirement: The loan application requested for the gross revenues for the twelve month prior to the date of the disaster (January 31, 2020) and the non-profit cost of operation for the twelve month prior to the date of the disaster (January 31, 2020). Condition: The loan application was completed with accurate information except for the gross revenues for the twelve month prior to the date of the disaster (January 31, 2020) and the non-profit cost of operation for the twelve month prior to the date of the disaster. The School used the period from 7/1/2019 through 1/31/2020 which they were able to support. Questioned costs: None. Context: The School did not have adequate internal controls designed to ensure that the information in the loan application was accurate. Cause: There are no procedures in place to ensure that the School is in compliance with the terms of the loan agreement. Effect: Effect is that the School submitted the loan application which contained errors.. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The School should implement procedures to ensure that information in the loan application is accurate. Views of responsible officials: There is no disagreement with the audit finding.