Notes to SEFA
Title: Significant Accounting Policies
Accounting Policies: The accompanying schedules of expenditures of federal and state and other awards include the federal and state contract and grant activity of Rural Enterprises of Oklahoma, Inc., (REI) and are presented on the accrual basis of accounting. The information in the schedule of expenditures of federal awards (the Schedule) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in, the preparation of the consolidated financial statements. REI received federal awards directly from federal agencies.
De Minimis Rate Used: N
Rate Explanation: REI has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. REI's summary of significant accounting policies is presented in Note 1 in REI's basic financial statements. Federal Loan Programs Note 9 of REI's consolidated financial statements discloses two loan programs from the USDA and SBA, with outstanding note payable loan balances of $0 and $401,000, respectively, at December 31, 2022. Loans made from the SBA program are ongoing and new loans were made in the current year. REI paid off all USDA Rural Development IRP notes in 2022. Note 6 of REI's consolidated financial statements discloses the outstanding loan receivable balance at December 31, 2022, for loans made under the USDA and SBA programs, which were $0 and $280,244, respectively. REI was approved to participate in the SBA Community Advantage Loan Program to meet the needs of small businesses in underserved markets. It provides mission-based lenders focused on economic development access to 7(a) loan guarantees for loans of $250,000 or less. REI maintains $5,000,000 in Director and Officers and Errors and Omissions Insurance as required by the Federal Loan Programs it administers.
Title: Economic Development Cluster
Accounting Policies: The accompanying schedules of expenditures of federal and state and other awards include the federal and state contract and grant activity of Rural Enterprises of Oklahoma, Inc., (REI) and are presented on the accrual basis of accounting. The information in the schedule of expenditures of federal awards (the Schedule) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in, the preparation of the consolidated financial statements. REI received federal awards directly from federal agencies.
De Minimis Rate Used: N
Rate Explanation: REI has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Federal expenditures in 2022 under the Economic Development Cluster (Assistance Listing Number 11.307) as determined in accordance with Uniform Guidance were as follows: Economic Adjustment Assistance Loan Program: See the Notes to the SEFA for chart/table.