Audit 369173

FY End

2024-12-31

Total Expended

$1.95M

Findings

2

Programs

1

Organization: Mzc Foundation Inc. (GA)

Year: 2024 Accepted: 2025-09-30

Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1156795	2024-001	Material Weakness	Yes	I
1156796	2024-002	Material Weakness	Yes	I

ALN	Program	Spent	Major	Findings
20.942	Thriving Communities Program Capacity Builders Cooperative Agreements	$1.95M	Yes	2

Contacts

Name	Title	Type
GNW8K3JAT7J6	Allie Kelly	Auditee
7702628948	Aileen Bolger	Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the MZC Foundation, d/b/a The Ray under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

Grant monies received and disbursed are for specific purposes and are subject to review by the grantor agencies. Such audits may result in certain requests for reimbursement not being paid due to disallowed expenditures. Management does not believe that such disallowance, if any, would have a material effect on its financial position.

The Foundation did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, loans, or loan gurantees for the year ended December 31, 2024.

Finding Details

Finding 2024-001

2024-001: Procurement – Material Weakness Federal Program Information: Funding Agency: U.S Department of Transportation FALN: 20.942 Thriving Communities Program Award Year: 2023-2025 Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award. Additionally, under 2 CFR Section 200.320, the Foundation must have and use documented procurement procedures for acquisition of goods and services under a federal award or a sub‐award. Condition: 2 CFR Section 200.320, the Foundation is required to have and use documented procurement procedures for acquisition of goods and services under a federal award. The Foundation does not have approved policies and procedures over procurement. The Foundation was unable to identify any controls to ensure that transactions weren’t had between ineligible parties. Effect: Not having a procurement policy may result in funds to be returned back to grantor and/or impact future funding. Cause: Supporting procurement documentation for the acquisition of goods and services were not properly established largely due to overall limited number of personnel for certain functions and lack of board oversight. Questioned Costs: None Recommendation: We recommend the Foundation strengthen its policies and procedures to ensure procurement is adequately documented for that goods and services purchased in accordance with Uniform Guidance and other federal guidelines.

Finding 2024-002

2024‐002: Suspension and Debarment‐ Material Weakness Federal Program Information: Funding Agency: U.S Department of Transportation FALN: 20.942 Thriving Communities Program Award Year: 2023-2025 Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award. Under 2 CFR part 180, the Foundation is required to verify suspension or debarment from the excluded parties list system regarding compliance. Condition: Under 2 CFR part 180, the Foundation is required to verify suspension or debarment from the excluded parties list system regarding compliance. Though the Foundation did not have a policy for suspension and debarment, the Foundation complied with the requirements. Effect: Not having a suspension and debarment policy may result in funds to be returned back to grantor and/or impact future funding. Cause: Supporting suspension and debarment documentation for the acquisition of goods and services were not properly established in part due to several changes in personnel within the accounting area and overall limited number of personnel for certain functions and lack of board oversight. Questioned Costs: None Recommendation: We recommend the Foundation strengthen its policies and procedures to ensure suspension and debarment is adequately documented that goods and services purchased in accordance with Uniform Guidance and other federal guidelines. In addition, the Foundation should verify that all vendors under covered transactions are not listed on the excluded parties list system by performing a search on sam.gov and maintaining the results of such search in the vendor’s file.