Title: Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the modified 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The NKADD has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Northern Kentucky Area Development District. 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 NKADD, it is not intended to and does not present the financial position, changes in net position or cash flows of the NKADD. Although many of these programs are jointly funded by Federal, Kentucky and local sources, only Federal expenditures are reported on this schedule. The amounts shown are based on the Federal share of the combined allocations.
Title: Commodities Distribution
Accounting Policies: Expenditures reported on the schedule are reported on the modified 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The NKADD has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Amounts reported represent the dollar values of commodities distributed during the year. Dollar values were determined using USDA prescribed wholesale values per unit. At June 30, 2022, the NKADD had USDA food commodities totaling $571,954 in inventory.
Title: Revolving Loan Fund Calculations
Accounting Policies: Expenditures reported on the schedule are reported on the modified 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The NKADD has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Revolving loan fund (#04-19-59014): Balance of loans outstanding $30,299 Plus: Cash and investment balance $272,791 Plus: Administrative expenses $679 Plus: Loans written off during the fiscal year - Subtotal $303,769 Multiplied by federal share of initial capitalization 100% Total $303,769 The EDA released the Federal interest in the Revolving Loan Fund Award Number 04-19-59014 as of November 2021. The value was calculated as of the date of the release and will not appear on the Schedule of Expenditures of Federal Awards after June 30, 2022. Revolving loan fund (#04-79-07541): Balance of loans outstanding $317,920 Plus: Cash and investment balance $16,301 Plus: Administrative expenses $23,245 Plus: Loans written off during the fiscal year - Subtotal $357,466 Multiplied by federal share of initial capitalization 100% Total $357,466
Title: Reconciliation of Federal Revenues - Cash
Accounting Policies: Expenditures reported on the schedule are reported on the modified 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The NKADD has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Statement of Revenues, Expenditures and Changes in Fund Balance (page 10) Federal Revenues $6,778,391 Less: CDO (Federal Medicaid) ($857,675) Adjustment for Revolving Loan Fund Amount reported on page 10 ($145,874) Amount reported on page 71 $303,769 Amount reported on page 71 $357,466 Federal Expenditures Cash Schedule of Expenditures of Federal Awards (page 73) $6,436,077