Audit 15144

Title: Federal Loans Payable Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and List of Programs (the "Schedule") includes the federal grant activity under programs of the federal government for the year ended September 30, 2023. The information in the 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 (the "Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of Inter-Lakes Community Action Partnership, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Inter-Lakes Community Action Partnership, Inc. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. Inter-Lakes Community Action Partnership, Inc. has not elected to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. No amounts have been passed through to subrecipients for the year ended September 30, 2023. De Minimis Rate Used: N Rate Explanation: Inter-Lakes Community Action Partnership, Inc has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal expenditures for the U.S. Department of Housing and Urban Development ("HUD") Community Development Block Grant program includes the balance of a loan outstanding. This particular loan was funded by a grant from HUD to the City of Sioux Falls who passed through these funds in the form of a low-interest loan and for which the grantor imposes continuing compliance requirements. Total principal on this loan was $900,000 which was used to loan money to Horizon Place Apartments Limited Partnership to finance eligible activities including the provision of housing to low income and homeless families. Annual principal payments of $30,000 are due on this loan. The loan balance at September 30, 2023 was $750,000. Federal expenditures for the U.S. Department of of Agriculture ("USDA") Community Facilities Loans and Grants program includes the balance of a loan outstanding. This particular loan was funded by a grant from USDA to Inter-Lakes Community Action Partnership, Inc. the City of Sioux Falls who passed through these funds in the form of a low-interest loan and for which the grantor imposes continuing compliance requirements. Total principal on this loan was $1,024,000 which was used for a Head Start facility. Annual principal payments of $47,450 are due on this loan, along with additional principal paymnet of $401,386. The outstanding loan balance at September 30, 2023 was $275,554. Federal expenditures for the U.S. Department of Housing and Urban Development ("HUD") HOME Investment Partnership Program includes the balance of a loan outstanding. This particular loan was funded by a grant from HUD to the South Dakota Housing Development Authority who passed through these funds in the form of a 0% interest loan and for which the grantor imposes continuing compliance requirements. Total principal on this loan is $654,095 which is HOME-ARP funding as a construction to permanent forgivable loan for the Community Commons Project, beginning at execution of the Mortgage and Note and continue for a term of 20 years from the date of Project Completion. The loan will be forgive at the end of the Restricted Use Period as long as all requirements are met during this period. Agreement was entered into June 21, 2023, for a period of 20 years. The outstanding loan balance at September 30, 2023 was $654,095.