Title: Basis of Presentation
Accounting Policies: The schedule is presented on the accrual basis of accounting. Under the accrual basis, expenses are recognized in the accounting period in which the liability is incurred. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenses are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Milwaukee Economic Development Corporation has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Milwaukee Economic Development Corporation under programs of the federal government for the year ended December 31, 2022. 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) and State Single Audit Guidelines. Because the Schedule presents only a selected portion of the operations of Milwaukee Economic Development Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Milwaukee Economic Development Corporation. Expenditures for the following consolidated affiliates of Milwaukee Economic Development Corporation and Affiliates are not included to meet the requirements of the Uniform Guidance because they do not require an audit under the Uniform Guidance: MEDC Capital Fund VIII, LLC, MEDC Capital Fund X, LLC, MEDC Capital Fund VIII Investment Fund, LLC, MEDC Capital Fund XI, LLC
Title: Loan Programs
Accounting Policies: The schedule is presented on the accrual basis of accounting. Under the accrual basis, expenses are recognized in the accounting period in which the liability is incurred. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenses are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Milwaukee Economic Development Corporation has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Loans issued to economic development projects under the Community Development Block Grants/ Entitlement Grants Program (CDBG) (assistance listing number 14.218) were $0 during the year ended December 31, 2022. The balance of loans outstanding under the CDBG program was $323,933 at December 31, 2022. For the purpose of calculating federal expenditures for the Schedule, grants for revolving loan funds (RLF) under the Economic Adjustment Assistance Program (EDA) (assistance listing number 11.307) are calculated as the federal share of the sum of RLF loans outstanding at the end of the fiscal year, cash and investment balance in the RLF at the end of the fiscal year, administrative expenses paid out of RLF income during the year and the unpaid principal of all loans written off during the year. Loan balance $2,279,116 $2,904,039 $2,432,206 Cash accounts 436,504 208,065 314,199 Management fees 35,405 - 134,912 Loans written off --- Subtotal 2,751,025 3,112,104 2,881,317 Federal share 67% 50% 100% Total $1,834,016 $1,556,052 $2,881,317 Loans issued under EDA were $1,215,730 during the year ended December 31, 2022. Loans issued under the Community Development Financial Institutions Rapid Response Program (CDFI) (assistance listing number 21.024) were $2,112,799 during the year ended December 31, 2022. The balance of loans outstanding under the Rapid Response program was $2,392,228 at December 31, 2022.
Title: Pass-Through Agency
Accounting Policies: The schedule is presented on the accrual basis of accounting. Under the accrual basis, expenses are recognized in the accounting period in which the liability is incurred. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenses are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Milwaukee Economic Development Corporation has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The Milwaukee Economic Development Corporation received federal awards from the following pass-through agencies: City of Milwaukee Wisconsin, Department of Administration