Title: NOTE 1: SCOPE OF AUDIT PURSUANT TO THE UNIFORM GUIDANCE
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Grant and contract revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grants and contracts
De Minimis Rate Used: N
Rate Explanation: RCAC has an Indirect Cost Rate Negotiation Agreement, the rate in effect for the the year ended June 30, 2023 was 32.0%
All federal grant operations of Rural Community Assistance Corporation (RCAC) are included in the
scope of the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Compliance testing of all requirements under the
Uniform Guidance were performed for RCAC. The Rural Housing Service Self-Help Housing, Rural
Utilities Service, Tribal Rural Utilities Service, Wastewater Treatment Works, Colonias Rural Utility
Service, Rural Community Facilities Development, Compliance Advisors for Sustainable Water Systems,
Circuit Rifer Services and Tribal Circuit Rider Region 9, represent major federal award programs and
other grants with fiscal 2023 cash and noncash expenditures in excess of $750,000 to ensure coverage
of at least 25% of federally granted funds. Actual coverage is approximately 39% of total cash and
noncash federal award program expenditures.
Title: NOTE 2: BASIS OF PRESENTATION
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Grant and contract revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grants and contracts
De Minimis Rate Used: N
Rate Explanation: RCAC has an Indirect Cost Rate Negotiation Agreement, the rate in effect for the the year ended June 30, 2023 was 32.0%
The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes all Federal grants and
contracts to RCAC that had activity during the year ended September 30, 2023. This schedule has been
prepared on the accrual basis of accounting. Grant and contract revenue is recorded for financial
reporting purposes when RCAC has met the qualifications for the respective grants and contracts. Grants
that have expired and procurement contracts that do not have an individual CFDA number, have been
identified by contract number in the SEFA.
Title: NOTE 3: RELATIONSHIP TO CONSOLIDATED FINANCIAL STATEMENTS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Grant and contract revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grants and contracts
De Minimis Rate Used: N
Rate Explanation: RCAC has an Indirect Cost Rate Negotiation Agreement, the rate in effect for the the year ended June 30, 2023 was 32.0%
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree, in all
material respects, to amounts reported within the consolidated financial statements. Federal award
revenues are reported principally in RCAC's consolidated financial state
Title: NOTE 4: AMOUNTS PROVIDED TO SUB-RECIPIENTS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Grant and contract revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grants and contracts
De Minimis Rate Used: N
Rate Explanation: RCAC has an Indirect Cost Rate Negotiation Agreement, the rate in effect for the the year ended June 30, 2023 was 32.0%
Amounts provided to sub-recipients under Federal and non-federal award programs during the year
ended September 30, 2023 were as follows:
HHS Community Services Block Grants
$
6,923
USDA Technitrain
12,000
Rural Community Development Initiative
46,707
Rural Housing Service Self-Help
2,918
HUD National Disaster Resilience Competition
68,486
*NeighborWorks Housing Stability Counseling Program
(238,363)
HUD Housing Community Development
423,923
Non-Federal Award Program Grants and Pass-through Awards
2,744,950
Total Grants and Pass-through Awards
$ 3,067,544
Title: NOTE 5: FEDERAL AWARDS EXPENDED WITH COMMON FEDERAL AL NUMBER
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Grant and contract revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grants and contracts
De Minimis Rate Used: N
Rate Explanation: RCAC has an Indirect Cost Rate Negotiation Agreement, the rate in effect for the the year ended June 30, 2023 was 32.0%
When there is more than one program under a single Federal AL number, the Schedule of Expenditures
of Federal Awards totals all programs under the one Federal AL number. Occasionally, however, this total
could not be conveniently displayed because all programs under one Federal AL number were not
contiguous. When this occurred, this total is not shown in the Schedule, but instead, is provided below:
Federal
Expenditures
AL Number
10.446
$ 293,750
10.761
1,926,623
10.890
102,428
12-31ME-18-C-0005
2,778,975
14.169
960,332
14.252
2,213
14.265
434,290
66.203
394,640
66.424
1,461,257
66.468
1,708,159
93.570
1,282,182
93.569
198,059
Title: NOTE 6: PASS-THROUGH ENTITIES' IDENTIFYING NUMBER
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Grant and contract revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grants and contracts
De Minimis Rate Used: N
Rate Explanation: RCAC has an Indirect Cost Rate Negotiation Agreement, the rate in effect for the the year ended June 30, 2023 was 32.0%
When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal
Awards shows, if available, the identifying number assigned by the pass-through entity. When no
identifying number is shown, RCAC either determined that no identifying number is assigned for the
program or was simply unable to obtain an identifying number from the pass-through entity.
Title: NOTE 7: INDIRECT COSTS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Grant and contract revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grants and contracts
De Minimis Rate Used: N
Rate Explanation: RCAC has an Indirect Cost Rate Negotiation Agreement, the rate in effect for the the year ended June 30, 2023 was 32.0%
RCAC has a Negotiated Indirect Cost Rate Agreement (NICRA) with the U.S. Government. Accordingly,
it has elected not to use the de minimis indirect cost rate of 10%.
Title: NOTE 8: GRANTS TO LENDING CAPITAL
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Grant and contract revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grants and contracts
De Minimis Rate Used: N
Rate Explanation: RCAC has an Indirect Cost Rate Negotiation Agreement, the rate in effect for the the year ended June 30, 2023 was 32.0%
On April 5, 2019, RCAC received a $714,000 award from the U.S. Treasury, Community Development
Financial Institution (CDFI) for lending capital to be lent to qualified borrowers. $78,000 and $72,000 were
disbursed in FY23 and FY22 respectively.
On February 26, 2021, RCAC received a $1,826,265 award from the U.S. Treasury, Community
Development Financial Institution (CDFI) for lending capital to be lent to qualified borrowers. $1,031,856
and $60,000 were disbursed in FY23 and FY22 respectively.
On February 11, 2022, RCAC received a $660,000 award from the U.S. Treasury, Community
Development Financial Institution (CDFI) for lending capital to be lent to qualified borrowers. As of
September 2023, $128,841 was disbursed.
On June 24, 2022, RCAC received a $500,000 award from the U.S. Treasury, Community Development
Financial Institution (CDFI) for lending capital to be lent to qualified borrowers. As of September 2023,
none of these funds have been disbursed.
On June 27, 2019, RCAC received a $3,562,500 award from the U.S. Treasury, Capital Magnet Fund
(CMF) for lending capital to be lent to qualified borrowers. $947,249 and none were disbursed in FY23
and FY22 respectively.
On May 29, 2020, RCAC received a $2,755,000 award from the U.S. Treasury, Capital Magnet Fund
(CMF) for lending capital to be lent to qualified borrowers. $865,000 and $707,776 were disbursed in
FY23 and FY22 respectively.
On September 10, 2021, RCAC received a $4,275,000 award from the U.S. Treasury, Capital Magnet
Fund (CMF) for lending capital to be lent to qualified borrowers. $38,790 and none were disbursed in
FY23 and FY22 respectively.
On September 4, 2021, RCAC received a $900,000 award from USDA Rural Utilities Service (RUS) for
lending capital for the Decentralized Water Systems Program to be lent to qualified borrowers. $58,116
and $6,337 were disbursed in FY23 and FY22 respectively.
On September 1, 2020, RCAC received a $333,000 award from USDA Rural Utilities Service (RUS) for lending capital to be lent to qualified borrowers. $160,008 were obligated to RUS #10.
On September 17, 2021, RCAC received a $333,000 award from USDA Rural Utilities Service (RUS) for
lending capital to be lent to qualified borrowers. $136,968 and none were disbursed in FY23 and FY22
respectively.
On November 28, 2020, RCAC received a $1,000,000 award from USDA Intermediary Relending
Program (IRP), 30 years 1% interest rate, with a maturity date of September 2050 for lending capital to
be lent to qualified borrowers. $235,781 and $451,060 were disbursed in FY23 and FY22 respectively.
On March 20, 2023, RCAC received a $1,000,000 award from USDA Intermediary Relending Program
(IRP), 30 years 1% interest rate, with a maturity date of March 2053 for lending capital to be lent to
qualified borrowers. As of September 30, 2023, $115,148 was disbursed.
On November 12, 2020, RCAC received a $2,375,000 award from the U.S. Department of Commerce,
Economic Development Administration (EDA) for lending capital to be lent to qualified borrowers. As of
September 30, 2023, $379,424 was disbursed.