Title: NOTE 1 - BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained within the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned.
De Minimis Rate Used: N
Rate Explanation: CIC has not elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Community Investment Corporation (CIC) under programs of the federal government for the year ended September 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of CIC, it is not intended to and does not present the financial position, results of operations, and change in net assets, or cash flows of CIC.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained within the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned.
De Minimis Rate Used: N
Rate Explanation: CIC has not elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained within the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned.
Title: NOTE 3 - INDIRECT COST RATE
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained within the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned.
De Minimis Rate Used: N
Rate Explanation: CIC has not elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
CIC has not elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 4 - FEDERAL EXPENDITURE CALCULATION FOR DEPARTMENT OF COMMERCE
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained within the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned.
De Minimis Rate Used: N
Rate Explanation: CIC has not elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
EDA CARES RLF:
Balance of RLF loans outstanding at September 30, 2023 - $ 2,903,038
Cash balance in the RLF at September 30, 2023 - 41,908
Administrative expenses paid out of RLF income during the year ended September 30, 2023 - 120,980
Unpaid principal of all loans written off during the year ended September 30, 2023 -0-
Total - 3,065,926
The Federal share of the RLF - 100%
Total Expenditures Reported on the Schedule of Expenditures of Federal Awards - $3,065,926
Title: NOTE 5 - LOAN PROGRAMS
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained within the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned.
De Minimis Rate Used: N
Rate Explanation: CIC has not elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
All loan programs are administered by CIC. The amounts reflected on the Schedule reports the outstanding balance of loans receivable as of September 30, 2022 plus new loans originated during the year ended September 30, 2023 or in the case of the economic development cluster, federal expenditure calculation for the year ended September 30, 2023 (see Note 4). The balance of loans receivable at September 30, 2023 follows:
Small Business Administration Microloan Program 59.046 - $785,674
7(a) Loan Guarantees 59.012 - 5,577,897
Total Small Business Administration 6,363,571
Department of Commerce
Economic Development Cluster
Economic Adjustment Assistance
EDA CARES RLF 11.307 - 2,903,038
Total Department of Commerce 2,903,038
Total Loans Receivable $9,266,609
Title: NOTE 6 - 7(A) LOAN GUARANTEES RECONCILIATION
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained within the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned.
De Minimis Rate Used: N
Rate Explanation: CIC has not elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
CIC is a lender under the SBA Community Advantage (CA) Pilot Loan Program. Under the provisions of CA Program, the SBA guarantees 85% of loans up to $150,000 and 75% of loans from $150,001 to $350,000. The remaining portion of the loans are unguaranteed. For reporting on the Schedule, expenditures and the outstanding balance of the 7(a) Loan Guarantees program are presented net of the unguaranteed portion.
Beginning Balance - 7(a) Loan Guaranteed Portion at October 1, 2022 $4,783,247
Add: 7(a) Guaranteed Portion of New Loans Issued 2,347,321
Total Expenditures Reported on the Schedule of Expenditures of Federal Awards $7,130,568
Following is a reconciliation of the guaranteed and the unguaranteed portions of the CA Program as of September 30, 2023:
Outstanding Loan Balance - 7(a) Loan Guaranteed Portion at September 30, 2023 - $5,577,897
Add: 7(a) Loan Unguaranteed Portion - 1,764,659
Total Outstanding Loan Balance under the CA Program - $7,342,556
On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act) was signed into law which increased SBA guarantees to 90% through September 30, 2021. On October 1, 2021, the guaranty percentages automatically reverted to previous levels.
Title: NOTE 7 - COVID-19 RELATED AWARDS
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained within the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned.
De Minimis Rate Used: N
Rate Explanation: CIC has not elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
On July 27, 2020, CIC was approved by the EDA for a $3,150,000 revolving loan fund to alleviate sudden and severe economic dislocation caused by the novel coronavirus (COVID-19) pandemic. In addition, the EDA provided CIC with up to $315,000 to defray the cost of administering loans under this new program. The total project cost is estimated to be $3,465,000 and is funded under additional Supplemental Appropriations for Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Federal expenditures related to this loan program are reported on the schedule of expenditures of federal awards under the program title EDA CARES RLF.
Title: NOTE 8 – SMALL BUSINESS ADMINISTRATION MICROLOAN PROGRAM
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained within the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned.
De Minimis Rate Used: N
Rate Explanation: CIC has not elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
As of September 30, 2023, CIC owed the SBA under separate borrowings as follows:
SBA Loan Number 6830775006
Issue Date 5/14/2014
Interest Rate 0.50%
Original Amount $950,000
Balance - Beginning of Year $150,754
Loan proceeds -0-
Loan repayments (88,432)
Balance - End of Year $62,322
SBA Loan Number 2749167008
Issue Date 7/10/2018
Interest Rate 1.50%
Original Amount $950,000
Balance - Beginning of Year $660,039
Loan proceeds -0-
Loan repayments (104,458)
Balance - End of Year $555,581
SBA Loan Number 4396557010
Issue Date 4/3/2020
Interest Rate 0.00%
Original Amount $1,000,000
Balance - Beginning of Year $681,481
Loan proceeds -0-
Loan repayments (88,888)
Balance - End of Year $592,593
SBA Loan Number 5157549105
Issue Date 6/28/2023
Interest Rate 2.25%
Original Amount $1,000,000
Balance - Beginning of Year $-0-
Loan proceeds -0-
Loan repayments -0-
Balance - End of Year $-0-
Total
Balance - Beginning of Year $1,492,274
Loan proceeds -0-
Loan repayments (281,778)
Balance - End of Year $1,210,496