Gearin' Up Bicycles

“The organization discovered a signficant diversion of assets during the year, see explanation for schedule l, part i.”

“The form 990 is prepared by the outside accountants. A copy of the 990 is sent to all board members for their review. Any edits are incorporated into the forms if necessary before the return is filed.”

“In connection with any actual or possible conflict of interest, an interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the directors and members of committees with governing board delegated powers considering the proposed transaction or arrangement. After disclosure of the financial interest and all material facts, and after any discussion with the interested person, he/she shall leave the governing board or committee meeting while the determination of a conflict of interest is discussed and voted upon. If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the governing board or committee shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in the corporation's best interest, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination it shall make its decision as to whether to enter into the transaction or arrangement.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“On april 30, 2020, the organization received loan proceeds in the amount of $45,400 under the paycheck protection program. The promissory note calls for monthly principal and interest payments amortized over the term of the promissory note with a deferral of payments for the first ten months. Under the coronavirus aid, relief, and economic security act (cares act), the promissory note may be forgiven by the small business administration in whole or in part. During the year ended december 31, 2020, the organization expended and tracked the ppp funds for purposes outlined in the cares act guidance and believes they have met all conditions set forth for full forgiveness. Accordingly, under guidance found in fasb asc 958-605, the organization has recognized the ppp funding as a conditional grant by which all conditions have been met. On march 9, 2021, the organization received forgiveness of the entire loan from the small business administration. $45,400 of grant income is included in grant revenue on the accompanying statement of activities and changes in net assets.”

“Loss from fraudulent expenses -27,154.”

“The organization incorrectly recorded a gain of $160,595 from a legal matter to accounts receivable and rent expense of $13,149 was not properly accrued for the year ending december 31, 2019. This resulted in net assets being overstated by $173,744. Accordingly, net assets without donor restrictions on december 31, 2019 were restated to reflect the correct amount.”