Audit 18464

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Such expenditures are recognized following the cost principles contained in contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Catalytic Fund has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Catalytic Fund has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal grant activity of Catalytic Development Funding Corp of Northern Kentucky (the "Catalytic Fund") 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"). Because the Schedule presents only a selected portion of the operations of the Catalytic Fund, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Catalytic Fund.

Title: Loans Receivable Accounting Policies: Expenditures reported on the Schedule are reported in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Such expenditures are recognized following the cost principles contained in contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Catalytic Fund has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Catalytic Fund has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The CDFI RRP program listed, includes relevant loan activity, is administered directly by the Catalytic Fund. Loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at December 31, 2022 consists of: Balance as of January 1, 2022 $ 511,451, Loans issued during 2022 $1,314,814, Balance as of December 31, 2022 $ 1,826,265.