Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following, as applicable, OMB Circular A-122, Cost Principles for Non-Profit Organizations, or thecost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowableor are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments orcredits made in the normal course of business to amounts reported as expenditures in prior years. TheCenter has elected not to use the 10-percent de minimis indirect cost rate allowed under the UniformGuidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
MICROLOAN PROGRAM (59.046) - Balances outstanding at the end of the audit period were 1956607. 7(A) LOAN GUARANTEES (59.012) - Balances outstanding at the end of the audit period were 1744000. 7(A) LOAN GUARANTEES (59.012) - Balances outstanding at the end of the audit period were 1703857.
Title: NOTE 3 - MICROLOANS
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following, as applicable, OMB Circular A-122, Cost Principles for Non-Profit Organizations, or thecost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowableor are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments orcredits made in the normal course of business to amounts reported as expenditures in prior years. TheCenter has elected not to use the 10-percent de minimis indirect cost rate allowed under the UniformGuidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Small Business Administration (SBA) Microloan program is funded by loans from the SBA to the Center. From the SBA loans, the Center then makes small business microloans to eligible participants. Number of Loans Amount Outstanding Microloans balance 1 50 $ 1,956,607Microloans disbursed during the fiscal year 78 $ 1,455,171 May 31, 2022 Due to the continuing compliance requirements, for purposes of the Schedule, the amount reported includes the outstanding loan balance at the beginning of the fiscal year plus new loans disbursed during the fiscal year. The outstanding loans payable to SBA under this program as of May 31, 2022, totaled $2,364,138. See consolidated financial statements Note 6 for additional details.
Title: NOTE 4 - CA LOAN GUARANTEES
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following, as applicable, OMB Circular A-122, Cost Principles for Non-Profit Organizations, or thecost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowableor are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments orcredits made in the normal course of business to amounts reported as expenditures in prior years. TheCenter has elected not to use the 10-percent de minimis indirect cost rate allowed under the UniformGuidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Center has been designated by the SBA as a community advantage lender. The loans made by the Center under this program are guaranteed by SBA at 85% for loans less than $150,000 and 75% for loans greater than $150,000 and up to $250,000. The Center sells the guaranteed portion of the loan in a secondary market; however, still remains responsible for servicing the loans in their entirety. Number of Loans Amount Outstanding Community Advantage loan balance 61 $ 5,157,398 Community Advantage loans disbursed in the fiscal year 11 $ 1,744,000Outstanding SBA Loan Guarantees 61 $ 4,127,475 May 31, 2022 Due to the continuing compliance requirements, for purposes of the Schedule, the amount reported includes the outstanding loan balance at the beginning of the fiscal year plus new loans disbursed during the fiscal year.
Title: NOTE 5 - PAYROLL PROTECTION PROGRAM
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following, as applicable, OMB Circular A-122, Cost Principles for Non-Profit Organizations, or thecost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowableor are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments orcredits made in the normal course of business to amounts reported as expenditures in prior years. TheCenter has elected not to use the 10-percent de minimis indirect cost rate allowed under the UniformGuidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Center has been designated by the SBA as a PPP lender. The loans made by the Center under this program are guaranteed by SBA at 100%.Number of Loans AmountOutstanding PPP balance 39 $1,703,857PPP loans disbursed during the fiscal year 65 $1,514,465
Title: NOTE 6 - RELATIONSHIP TO CONSOLIDATED FINANCIAL STATEMENTS
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following, as applicable, OMB Circular A-122, Cost Principles for Non-Profit Organizations, or thecost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowableor are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments orcredits made in the normal course of business to amounts reported as expenditures in prior years. TheCenter has elected not to use the 10-percent de minimis indirect cost rate allowed under the UniformGuidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The amount of total expenditures of federal awards reconciles to the revenue in the consolidated statement of activities as follows:Total expenditures of federal awards $28,677,390Less: loan and loan guarantees (27,790,759)Federal grant revenue included in gifts and grants on the statement of activities $886,631
Title: NOTE 7 - SUBRECIPIENTS, NONCASH ASSISTANCE AND FEDERAL INSURANCE
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following, as applicable, OMB Circular A-122, Cost Principles for Non-Profit Organizations, or thecost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowableor are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments orcredits made in the normal course of business to amounts reported as expenditures in prior years. TheCenter has elected not to use the 10-percent de minimis indirect cost rate allowed under the UniformGuidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Center did not provide any federal funds to subrecipients nor did they receive any federal noncash assistance or insurance.