Semper Fi & America's Fund

According to the Semper Fi & America's Fund audit of June 30, 2021 (Note 10, Risks and Concentrations): "Two donors comprised 33% and 36% of contributions for the years ended June 30, 2021 and 2020, respectively..."

According to the Semper Fi & America's Fund audit of June 30, 2021 (Note 6, Note Payable):

"On May 4, 2020, the Organization received loan proceeds in the amount of $1,906,100 under the Paycheck Protection Program (PPP). The PPP, established as part of the CARES Act, provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after twenty-four weeks as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates employees or reduces salaries during the twenty-four-week period. The unforgiven portion of the PPP loan is payable over two years at an interest rate of 1%, with a deferral of payment for the first six months. The Organization used the proceeds for purposes consistent with the PPP. The loan was forgiven by the SBA and the bank on March 31, 2021 and the Organization recognized the forgiveness as revenue in the statement of activities during the year ended June 30, 2021."

According to the Semper Fi & America's Fund tax filing for the fiscal year ended June 30, 2021, Semper Fi reports for Business Transactions Involving Interested Persons transactions described as "Employee Wages" in the amounts shown below, related to five individuals who share a family relationship with a Semper Fi officer, director, or key employee (IRS Form 990, Schedule L, Parts IV & V):

(1) Charo Bates, Child of Director: $53,709

(2) Cicely Kent-Warren, Child of Director: $68,623

(3) Matthew Rocco, Child of Key Employee: $66,122

(4) Brooke Guenther, Child of Officer: $10,574

(5) Christopher Saylor, Child of Key Employee: $69,013

According to the Semper Fi & America's Fund audit of June 30, 2021 (Note 13, Subsequent Event):

"On March 31, 2021, the Organization entered into an agreement (the 'Agreement') with Vail Veterans Foundation, Inc. (VVF). Under the Agreement, the Organization received $4.7 million in investments and cash from VVF and agreed to assume operations of VVF's five programs, but did not acquire VVF's legal entity. All assets received from VVF were included in Contributions in the FY 2021 Statement of Activities. As of June 30, 2021, the Organization was in compliance with all terms of the Agreement. Subsequent to June 30, 2021, the Organization and VVF agreed it was in their respective best interests to rescind and cancel the Agreement. A rescission agreement (the Rescission) was entered into by both parties on October 21, 2021. Per the Rescission, the Organization returned $4.8 million to VVF, consisting of the assets it received under the Acquisition, plus earnings on the investments, less costs incurred by the Organization under the Acquisition. Per the Rescission, the Organization was released from all obligations it assumed in the Acquisition and has no future financial obligations. The $4.8 million will be recorded as a non-operating loss in The Fund's FY 2022 Statement of Activities."

According to the Semper Fi & America's Fund audit of June 30, 2021 (Note 12, Contingencies):

"On March 11, 2020 the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. The COVID-19 outbreak in the United States has caused business disruptions through mandated and voluntary closing of businesses and shelter-in-place orders. In response, the U.S Government enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which includes significant provisions to provide relief and assistance to affected organizations. While the disruption is currently expected to be temporary, there is considerable uncertainty around the duration of business closures, shelter-in-place orders, and the ultimate impact of the CARES Act and other governmental initiatives. The Organization did not incur any significant financial impact as a result of the pandemic for the fiscal years ended June 30, 2020 and 2021. However, the future financial impact and duration cannot be reasonably estimated at this time."