Florida Black Business Loan Program2010-11 Consulting Report AddendumMay 31, 20122Our initial engagement related to the study was completed and issued on February 23, 2012. Ourstudy included site visits of eight organizations certified as Black Business InvestmentCorporations. We attempted to also perform a site visit of the First Coast Black BusinessInvestment Corporation (FCBBIC), but the organization initially was not responsive to ourrequests. Subsequent to the issuance of our initial report the FCBBIC contacted our office andthe Department of Economic Opportunity indicating its intent to cooperate with DEO’s requestto make its records available for inspection. On May 10, 2012, we performed an onsite visit of the First Coast Black Business Investment Corporation (FCBBIC). The procedures performedduring the site visit included:a.
Inspection of the audited financial statements and auditor work papers, as made availableto us.b.
Determination if funds were deposited into a separate interest-bearing account and if income was appropriately expended.c.
Inspection of quarterly reports, which include a written status report of Program activitiesand disbursement of funds.d.
Determination if eligibility requirements, as prescribed by the individual BBIC policies,are met for providing loans, loan guarantees, or investments to black business enterprises.e.
Determination if funds were used for authorized purposes, and within authorized limits,to provide support to black business enterprises.f.
Determination if subrecipient relationships were appropriately executed and monitored.g.
Determination if the unexpended funds were appropriately safeguarded and accounted forin the records of the Recipient.h.
Determination if loans or obligations were appropriately reported as current, past due, indefault, etc.i.
Determination of “Other Funds Used,” including matching funds, which are reported asbeing in support of black business enterprises. j.
Inspection of loan files, including supporting documentation for loans and investments,and for quarterly and annual reported amounts.k.
Inquiries of personnel regarding Program data and demographics and how information isgathered to provide to DEO.The time period included within the scope of our site visit was July 1, 2009 through December31, 2011. Subsequent to June 30, 2011, the FCBBIC did not apply for recertification as a Black Business Investment Corporation, and as a result, did not receive Program funds for the 2011-12fiscal year.The FCBBIC is a direct lending entity and awards loans primarily for working capitalcollateralized by contract assignments and tangible commercial property. Staffing of theFCBBIC includes one full-time employee and two independent contractors to performunderwriting services and to service the existing loans. Based on correspondence betweenOTTED and FCBBIC, it appeared that OTTED was aware of one of the subcontractorrelationships but we could not determine if OTTED was aware of the subcontractor relationshipfor loan servicing.