FAC Explorer

Audit 46020

FY End
2022-08-31
Total Expended
$6.38M
Findings
2
Programs
2
Organization: George J. and Hilda Meyer Foundation, Inc. (MO)
Year: 2022 Accepted: 2023-05-30
Auditor: Cliftonlarsonallen

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
44596 2022-001 Significant Deficiency - N
621038 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $6.23M Yes 1
93.498 Provider Relief Fund $143,882 - 0

Contacts

Name Title Type
MKYZRWQKJ2T9 Jeffrey Merritt Auditee
6605844455 Jeff Heitgerd Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: 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. De Minimis Rate Used: Y Rate Explanation: No funds were identified as having been provided to subrecipients by the Foundation andaccordingly, no funds identified in the schedule of expenditures of federal awards areattributable to subrecipient entities. There were no federal awards expended for noncashassistance or insurance. The Foundation has elected to use the 10% de minimis indirectcost rate allowable under the Uniform Guidance. COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - Balances outstanding at the end of the audit period were 6047918.
Title: Reconciliation of SEFA and Financial Statements Accounting Policies: 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. De Minimis Rate Used: Y Rate Explanation: No funds were identified as having been provided to subrecipients by the Foundation andaccordingly, no funds identified in the schedule of expenditures of federal awards areattributable to subrecipient entities. There were no federal awards expended for noncashassistance or insurance. The Foundation has elected to use the 10% de minimis indirectcost rate allowable under the Uniform Guidance. The SEFA includes Provider Relief Funds of $143,882 thta were received in Period 2 and Period 3 in accordance with the requirements of the compliance supplement for assistance listing number 93.498 as shown in the table below. Provider 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; Total $490,367

Finding Details

Finding 2022-001
2022 ? 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, 2021 through August 31, 2022 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 $143,000 for the year ended August 31, 2022. 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, 2022. Management will incorporate the funding calculation for the Replacement and Extension Account into the reconciliations to be performed and reevaluated monthly.
Finding 2022-001
2022 ? 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, 2021 through August 31, 2022 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 $143,000 for the year ended August 31, 2022. 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, 2022. Management will incorporate the funding calculation for the Replacement and Extension Account into the reconciliations to be performed and reevaluated monthly.