Notes to SEFA
Accounting Policies: Note A - Purpose of the Schedule:The accompanying Schedule of Expenditures of Federal Awards (SEFA) is a supplementary schedule to Mid- Columbia EconomicDevelopment District's financial statements and is presented for purposes of additional analysis. Because the SEFA presents onlyselected portion of the activities of MCEDD, it is not intended to and does not present either the financial position, results ofoperations, or changes in fund balances/equity of the District.Note B - Significant Accounting Policies:The reporting entity is fully described in Note 1 to MCEDD's statements. The SEFA includes all federal programs administered bythe District for the year ended June 30, 2022.Basis of PresentationThe accompanying Schedule includes the federal award activity of the District under programs of the federal government for the yearended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title2. U.S. Code of FederalRegulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does notpresent the financial position, changes in net assets, or cash flows of the District.Federal Financial AssistancePursuant to the Single Audit Act and the Uniform Guidance, federal financial assistance is defined as assistance provided by a federalagency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interestsubsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, isincluded in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does notinclude direct federal cash assistance to individuals. Solicited contracts between an entity and the federal government for which thefederal government procures tangible goods or services are not considered to be federal financial assistance.Major ProgramsThe Single Audit Act and the Uniform Guidance establish criteria to be used in defining major programs. Major programs for Mid-Columbia Business Development are those programs selected for testing by the auditor using a risk-assessment model, as well ascertain minimum expenditure requirements, as outlined in the Uniform Guidance. Programs with similar requirements may be groupedinto a cluster for testing purposes.Basis of AccountingThe receipt and expenditure of federal awards are accounted for under the same basis of accounting as the fund in which they arerecorded. Federal awards recorded in proprietary funds are reported using the accrual basis of accounting. Revenues are recordedwhen earned and expenses are recorded at the time liabilities are incurred. Federal awards recorded in governmental funds are reportedusing the modified accrual basis of accounting. Revenues are recognized when measurable and available. Expenditures are recordedwhen the related liability is incurred. 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.Indirect CostThe District has not elected to use the 10% de minimis indirect cost rate.Note C - Intermediary Relending Program: A summary of changes in the Intermediary Relending Program are as follows:Note D - Subsidized Interest:Low interest loans are federal financial assistance to the extent of the interest subsidy. Assuming fair value loan rateto be 7%, and knowing the actual loan rate to be 1%, subsidized interest is approximately $92,414.Note E - EDA Revolving Loan Fund:A summary of changes in EDA Revolving Loan Fund balances are as follows:Note F -CDBG Klickitat:A summary of changes in the CDBG Klickitat Revolving Loan Fund
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.