Title: 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 in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: RDF did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Raza Development Fund,Inc. (RDF) 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 Awads (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of RDF, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of RDF.
Title: 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 in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: RDF did not elect to use the 10% de minimis indirect cost rate as 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 in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: 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 in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: RDF did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
RDF did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Assistance from U.S. Department of Education
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: RDF did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Under the Department of Education's Credit Enhancement program Assistance Listing Number (ALN) 84.354, RDF received grant funds for the guarantee of Charter School loans issued by RDF, as follows: See the Notes to the SEFA for chart/table. RDF invested the grant funds in separate reserve accounts in accordance with the requirements of the grant agreements. Investment earnings are reinvested in the reserve accounts and are to be used in accordance with the provisions of the grant agreements. Such financial assistance is considered federal awards expended based on the amounts in the reserve accounts at the end of the grantee's fiscal year. During the year ended September 30, 2023, RDF added net investment income of $512,715 from the grant reserve accounts, leaving an ending balance of $25,734,619, which is included in federal expenditures presented in the accompanying Schedule under ALN 84.354.
Title: Assistance from U.S. Department of Treasury
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: RDF did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
RDF applied and was approved to receive $100,000,000 through the Community Development Financial Institution Bond Guarantee Program (Bond Program). The Bond Program gives RDF access to long-term fixed rate capital for terms of up to 29.5 years. RDF entered into a loan agreement with CRF QI, LLC (Qualified Issuer). As a condition of the program, RDF must pledge eligible secondary borrower loans as collateral to draw down on the loan. Under the program, the bonds are purchased by the Federal Financing Bank and the U.S. Department of Treasury will guarantee repayment. During the year ended September 30, 2023, RDF drew down $0 funds. Accordingly, the amount of $56,330,235 is included in federal expenditures under Federal ALN 21.014, which represents the outstanding bond payable balance at October 1, 2022, of $56,330,235, plus the current year draw down of $0. As of September 30, 2023, the outstanding bond loan payable balance was $54,253,600, secured by pledged loans receivable of $51,262,241 and cash equivalents of $9,536,826.