Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: Basis of PresentationThis schedule includes the federal grant activity of Norwood Square, Inc. under programs of the federalgovernment for the year ended December 31, 2022. The information presented in this schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Becausethe Schedule presents only a selected portion of the operations of Norwood Square, Inc., it is not intended toand does not present the financial position, changes in net assets, or cash flows of Norwood Square, Inc.
De Minimis Rate Used: N
Rate Explanation: Summary of Significant Accounting Policies1) Expenditures reported on the Schedule are reported on the accrual basis of accounting, except for thecapital advance as discussed below.2) Norwood Square, Inc.s federal award is not based on eligible costs incurred. Accordingly, NorwoodSquare, Inc. has not made an election related to the use of the 10% de minimis indirect cost ratedescribed in the Uniform Guidance.
Capital AdvanceFederal expenditures reported as capital advance represent the December 31, 2021 balance of a capitaladvance received in a previous year for which the grantor imposes continuing compliance requirements.The balance of the capital advance outstanding as of December 31, 2022 was $2,786,600.