Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE 1 BASIS OF PRESENTATION: The accompanying Schedule of Expenditures of Federal Awards includes all federal grants, contracts, and similar agreements of Covenant Community Capital Corporation (Covenant) 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 Audits for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Covenant, it is not intended to and does not present the financial position, results of operations, or cash flows of Covenant.NOTE 2 SUMMARY OF SIGNIFICANT 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: NOTE 3 DE MINIMIS COST RATE: Covenant did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
TDHCA-NEIGHBORHOOD STABILIZATION PROGRAM (14.256) - Balances outstanding at the end of the audit period were 3244034.