Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: 1. Basis of PresentationThe accompanying schedule of federal awards includes the federal grant activity of AEDC and ispresented on the accrual basis of accounting. The information in this schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Therefore, some amounts presented in this schedule may differ from amountspresented in, or used in, the preparation of the financial statements.2. Summary of Significant Accounting PoliciesExpenditures - Expenditures reported on the Schedule are reported on the accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in the UniformGuidance wherein certain types of expenditures are not allowable or are limited to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
MICROLOAN PROGRAM (59.046) - Balances outstanding at the end of the audit period were 138730. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM (10.870) - Balances outstanding at the end of the audit period were 390614. INTERMEDIARY RELENDING PROGRAM (10.767) - Balances outstanding at the end of the audit period were 3385112.
Title: Basis for Determining Expenditures of Federal Awards for 11.307
Accounting Policies: 1. Basis of PresentationThe accompanying schedule of federal awards includes the federal grant activity of AEDC and ispresented on the accrual basis of accounting. The information in this schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Therefore, some amounts presented in this schedule may differ from amountspresented in, or used in, the preparation of the financial statements.2. Summary of Significant Accounting PoliciesExpenditures - Expenditures reported on the Schedule are reported on the accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in the UniformGuidance wherein certain types of expenditures are not allowable or are limited to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The Office of Management and Budget (OMB) Compliance Supplement formula to determine theamount to be presented on the schedule of expenditures of federal awards for revolving loan fund(RLF) grants under federal CFDA 11.307. The formula to determine expenditures to be reported inthe Schedule is as follows:(1) The balance of RLF loans outstanding at the end of the recipient's fiscal year, plus;(2) The cash and investment balance in the RLF at the end of the fiscal year, plus;(3) Administrative expenses paid out of the RLF during the year, plus;(4) The unpaid principal of all loans written off during the year; and then multiply this sum by;(5) The federal share of the RLF based on the federal grant rate as specified in the grant award.Accordingly, AEDC has reported expenditures of federal awards for its Economic AdjustmentAssistance funded RLF program as follows:Balance of RLF loans outstanding at June 30, 2022 $248,797Cash balance in RLF at June 30, 2022 87,356Administrative expenses paid out of the RLF during the year -Unpaid principal of all RLF loans written off during the year -Total RLF loan pool 336,153The Federal share of the RLF loan pool 100%Total RLF expenditures for year ending June 30, 2022 $336,153