According to the AMVETS National Service Foundation audit of August 31, 2021 (Note 13, Related Party Transactions), the Foundation reports related party transactions in fiscal 2021 that include the following: – AMVETS Charities, Inc.: "Foundation repayments on operating advances" in the amount of $180,000. – AMVETS National Department: (1) "Grants awarded by the Foundation" in the amount of $875,000; (2) "Other donations provided by the Foundation" in the amount of $11,053; (3) "In-kind Financial services provided by the Foundation" in the amount of $59,731; and (4) "In-kind Human Resources services provided by the Foundation" in the amount of $55,846. – AMVETS Ladies Auxiliary: "In-kind Financial and Human Resources services provided by the Foundation" in the amount of $5,343.
[Note: AMVETS National Department (or National Headquarters) is rated separately by CharityWatch. The combined $886,053 in cash grants and other donations provided to the National Department by the Foundation, as noted above, represents approximately 17% of the Foundation's program services expenses in fiscal 2021 (after adjusting the thrift store operations and joint solicitation costs to fundraising).]
|
According to the AMVETS National Service Foundation audit of August 31, 2021 (Note 7, Paycheck Protection Program (PPP) Loan): "The Foundation was granted loans on March 15, 2021, and May 1, 2020, in the amount of $1,691,342, for each year, from a local bank under the Paycheck Protection Program (PPP) administered by a Small Business Administration (SBA) approved partner. The loans are uncollateralized and are fully guaranteed by the Federal Government. The loans bear interest at a rate of 1% per annum. No payments will be due on the PPP loan until either (1) the date that SBA remits the loan forgiveness amount to the lender, or (2) if the Company does not apply for loan forgiveness, 10 months after the end of the Company's loan forgiveness covered period. "The Foundation is eligible for loan forgiveness of up to 100% of the loan upon meeting certain requirements, such as maintaining employment levels during its covered period and using the funds for certain payroll and other eligible expenses. "The Foundation received a letter from the bank dated April 21, 2021, informing the Foundation that that [sic] the SBA approved the forgiveness of the entire loan amount of $1,691,342 granted on May 1, 2020, plus accrued interest totaling $16,311, which is reflected in the [audited] statements of activities. "According to the rules of the SBA, the Foundation is required to retain PPP loan documentation for six years after the date the loan is forgiven or repaid in full, and permit authorized representatives of the SBA...to access such files upon request. Should the SBA conduct such a review and reject all or some of the Foundation's judgments pertaining to satisfying PPP loan eligibility or forgiveness conditions, the Foundation may be required to adjust previously reported amounts and disclosures in the financial statements."
According to the AMVETS National Service Foundation audit of August 31, 2021 (Note 18, Subsequent Events): "Subsequent to August 31, 2021, the Foundation received a letter from Bank of America dated April 2, 2022, informing the Foundation that that [sic] the SBA approved the forgiveness of the entire loan amount of $1,691,342 including any accrued interest for the [PPP] loan granted on March 15, 2021. "Subsequent events have been evaluated through May 4, 2022, which is the date the [audited] financial statements were available to be issued." |
According to the AMVETS National Service Foundation audit of August 31, 2021 (Note 14, Concentrations of Credit Risk):
"Financial instruments that potentially subject the Foundation to significant concentrations of credit risk consist of cash and individual investments. Such investments are exposed to various risks such as market and credit fluctuation. Due to the level of risk associated with such investments, and the level of uncertainty related to changes in the value of such investments, it is at least reasonably possible that changes in risks in the near term could materially affect investment balances and the amounts reported in the [audited] financial statements." |
According to the AMVETS National Service Foundation audit of August 31, 2021 (Note 17, COVID-19 Financial Statement Impacts): "The COVID-19 pandemic, whose effects first became known in January 2020, is having a broad and negative impact on commerce and financial markets around the world. The United States and global markets experienced significant declines in value resulting from uncertainty caused by the pandemic. The Foundation has taken active steps in response to the COVID-19 pandemic including closely following all government directives and guidance. The Foundation is closely monitoring its investment portfolio and its liquidity and is actively working to minimize the impact of the pandemic. The extent of the impact of COVID-19 on the Foundation's operational and financial performance will depend on certain developments, including the duration and spread of the outbreak and its impacts on the Foundation's donors, employees, and vendors, all of which at present, cannot be determined. Accordingly, the extent to which COVID-19 may impact the Foundation's financial position and changes in its net assets and its cash flows is uncertain and the accompanying [audited] financial statements include no adjustments relating to the effects of this pandemic."
According to the AMVETS National Service Foundation audit of August 31, 2021 (Note 2 re: Use of Estimates): "The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of support and revenue and expenses during the reporting period. Actual results could differ materially from those estimates and be affected by the severity and duration of the COVID-19 pandemic, the extent of actions to contain or treat COVID-19, how quickly and to what extent normal economic and operating activity can resume, and the severity and duration of the global economic downturn that results from the pandemic." |