FAC Explorer

Audit 344172

FY End
2023-12-31
Total Expended
$1.83M
Findings
2
Programs
1
Organization: Arizona Small Business Association (AZ)
Year: 2023 Accepted: 2025-02-27
Auditor: Cbiz CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
524788 2023-003 Significant Deficiency - I
1101230 2023-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.83M Yes 1

Contacts

Name Title Type
JHAYV1NJ5AR4 Debbie Hann Auditee
6023064000 Allan Klose Auditor
No contacts on file

Notes to SEFA

Title: Association operations Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Association has not elected to use the ten percent de minimus indirect cost rate allowable under the Uniform Guidance. Arizona Small Business Association (the “Association”) is a non-profit 501(c)(6) organization serving to foster and empower Arizona’s small business community by offering relevant, dynamic, and innovative resources and advocacy for the growth of small businesses in Arizona. The Association has evaluated subsequent events through February 6, 2025, which is the date the Schedule of Expenditures of Federal Awards was available to be issued.
Title: Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Association has not elected to use the ten percent de minimus indirect cost rate allowable under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Association under a program of the federal government for the year ended December 31, 2023. The information in the Schedule is presented in accordance with the 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 presents only a selected portion of the operations of the Association, it is not intended to and does not present the financial position, results of operations or cash flows of the Association. The COVID-19 – Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) grant from the U.S. Department of Treasury has a project period of March 1, 2022 through September 30, 2024. The Association did not provide federal awards to subrecipients during the year ended December 31, 2023.
Title: Related party transactions Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Association has not elected to use the ten percent de minimus indirect cost rate allowable under the Uniform Guidance. The Association purchased services from a related party owned by a board member for consulting services over the SLFRF programs. Total payments made to the related party during the year ended December 31, 2023 were $50,000.

Finding Details

Finding 2023-003
Assistance Listing Number:21.027Program:COVID-19 – Coronavirus State and Local Fiscal Recovery FundsFederal Agency:U.S. Department of the TreasuryPass-Through Agencies:Arizona State Office of the Governor; Maricopa CountyPass-Through Grantor Identifying Number:UnknownAward Year:March 1, 2022 to September 30, 2024Compliance Requirement:Procurement, suspension and debarmentCriteria or Specific Requirement:In accordance with 2 CFR § 200.318 – Procurement Standards, the Association is required to maintain records to sufficiently detail the history of each procurement transaction, including the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price.Condition:The Association did not retain documentation regarding the procurement procedures performed over one of the vendors tested. Questioned Costs:N/AContext:In a population of 129 program costs, we conducted a non-statistical sample of 13 transactions. In our sample of 13 transactions, one procurement was above the micro-purchase but below the small purchase threshold for which there was no documentation retained regarding quotes or rates obtained from other vendors. Per review of all program costs, the untested costs either fell below the micro-purchase threshold or were explicitly named in the approved budget. Additionally, the Association has a written procurement policy that aligns with the requirements of 2 CFR § 200.318. As such this is deemed to be a significant deficiency in internal controls over compliance.Cause:The Association did not follow its procurement policy when purchasing goods and services under the federal award.Effect:Undocumented procurement decisions could violate the requirements of 2 CFR § 200.318.Repeat Finding:Not a repeat finding.Recommendation:We recommend implementing stronger controls to ensure adherence to the policies that conform to 2 CFR § 200.318.Views of Responsible Officials and Planned Corrective Actions:Management of the Association concurs with the finding. See Corrective Action Plan.
Finding 2023-003
Assistance Listing Number:21.027Program:COVID-19 – Coronavirus State and Local Fiscal Recovery FundsFederal Agency:U.S. Department of the TreasuryPass-Through Agencies:Arizona State Office of the Governor; Maricopa CountyPass-Through Grantor Identifying Number:UnknownAward Year:March 1, 2022 to September 30, 2024Compliance Requirement:Procurement, suspension and debarmentCriteria or Specific Requirement:In accordance with 2 CFR § 200.318 – Procurement Standards, the Association is required to maintain records to sufficiently detail the history of each procurement transaction, including the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price.Condition:The Association did not retain documentation regarding the procurement procedures performed over one of the vendors tested. Questioned Costs:N/AContext:In a population of 129 program costs, we conducted a non-statistical sample of 13 transactions. In our sample of 13 transactions, one procurement was above the micro-purchase but below the small purchase threshold for which there was no documentation retained regarding quotes or rates obtained from other vendors. Per review of all program costs, the untested costs either fell below the micro-purchase threshold or were explicitly named in the approved budget. Additionally, the Association has a written procurement policy that aligns with the requirements of 2 CFR § 200.318. As such this is deemed to be a significant deficiency in internal controls over compliance.Cause:The Association did not follow its procurement policy when purchasing goods and services under the federal award.Effect:Undocumented procurement decisions could violate the requirements of 2 CFR § 200.318.Repeat Finding:Not a repeat finding.Recommendation:We recommend implementing stronger controls to ensure adherence to the policies that conform to 2 CFR § 200.318.Views of Responsible Officials and Planned Corrective Actions:Management of the Association concurs with the finding. See Corrective Action Plan.