National Park Trust

As part of our evaluation of National Park Trust (the Trust), CharityWatch analyzed the Independent Auditors' Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance, and Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Consolidated Financial Statements Performed in Accordance with Government Auditing Standards.

According to the Schedule of Findings and Questioned Costs, Section A - Summary of Auditors' Results of the Independent Auditors' Report for fiscal 2024, a Significant Deficiency was identified in relation to the Trust's reporting of federal awards.

According to Section C - Federal Award Findings and Questioned Costs - Finding No. 2024-001:

"Criteria: According to 2 CFR Section 200.332, all awardees of applicable grants and cooperative agreements are required to report to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) on all subawards over $30,000.

Condition: The Trust did not provide timely FFATA reporting for ALN #15.954 subawards subject to the FFATA reporting requirements.

Context: This is a condition identified based on review of 2 CFR Section 200.332.

Cause: The Trust was not aware of this reporting requirement.

Perspective information: All required FAFATA reports were not timely submitted.

Effect: The Trust is not in compliance with FFATA reporting requirements for the fiscal year 2024.

Identification of a Repeat Finding: This is not a repeat finding.

Recommendation: We suggest that management review all awards for subrecipients and ensure that FFATA reporting is completed in a timely manner for subawards subject to the requirements.

Views of Responsible Officials: The Trust agrees with the finding.

Planned Corrective Action: The Trust will review all subawards for subrecipients and ensure that FFATA reporting is completed in a timely manner for subawards subject to the requirements. The Trust will add a clause in the Sub-awards stating this requirement and will submit FFATA reports immediately upon subaward disbursement.

Responsible Official: Mike Hoehn, Senior Director of Finance and Administration

Anticipated Completion Date: This was completed on November 22, 2024."

The above information represents only a sampling of the Independent Auditor's Report. A complete copy of the Trust's consolidated audited financial statements for the year ended June 30, 2024, along with a complete Independent Auditor's Report, is available on ProPublica’s Nonprofit Explorer website.

During a financial audit, auditors conduct various forms of sampling, which involves checking a portion of an organization's financial transactions to ensure that they are accurately recognized and recorded, that sufficient documentation exists to substantiate them, and that proper internal controls are being maintained by an organization's management. Samples are planned, selected, and evaluated for the purpose of providing an organization's auditors with statistically representative data adequate for inferring the overall accuracy of the reporting. An audit does not entail the auditors checking 100% of an organization's financial transactions to confirm the accuracy of the total of the reporting. For this reason, errors may exist in an organization's financial reporting that go undetected by its auditors.

According to the National Park Trust consolidated audit of June 30, 2024 (Note 12, In-Kind Contributions), the Trust received in-kind donated legal services in fiscal 2024 on which it placed a total value of $212,248.

[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found on the Our Process page.]

According to the National Park Trust consolidated audit of June 30, 2024 (Note 9, Related Parties):

"...On April 2, 2021, the Trust entered into a note agreement with a Board of Trustee member to finance the purchase price of the property in Fort Scott, KS of $155,000. The note is interest-only, payable quarterly at an annual rate of 3% with a balloon payment of the principal on its maturity date of June 30, 2027. Upon sale of the property in December 2023 to the National Park Service, the Board of Trustee member forgave this note payable..."

According to the National Park Trust 2024 tax filing: "Stephen Schuler and Kevin Seth have a family relationship" (IRS Form 990, Schedule O re: Form 990, Part VI, Section A, line 2).

Stephen Schuler is reported as Treasurer; Kevin Seth is reported as a Trustee. Schuler is reported as both a Director and Officer, while Kevin Seth is reported as a Director (IRS Form 990, Part VII, Section A). The Trust reports having 23 voting members on its governing body at the end of fiscal 2024, with all 23 members reported as being independent (IRS Form 990, Part VI, Section A, lines 1a & 1b).