Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the 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. The Conservancy has elected not to use the 10-percent 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 (the Schedule) includes the federal award activity of Pontchartrain Conservancy (the Conservancy) and Save Our Lake Endowment, Inc. (the Endowment), collectively, the Entity. The Entitys reporting entity is defined in Note 1 to the consolidated financial statements for the year ended December 31, 2022. All federal awards received from federal agencies are included on the schedule. 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 Entity, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Entity.
Title: Relationship to the Financial Statements
Accounting Policies: Expenditures reported on the Schedule are reported on the 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. The Conservancy has elected not to use the 10-percent 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.
Federal awards are included in the consolidated financial statements of the Conservancy as follows: Contracts - Federal $19,785 Grants- Federal838,283 Less: fee for service revenues (10,700) Total federal expenditures of the Schedule $847,368
Title: Economic Injury Disaster Loan
Accounting Policies: Expenditures reported on the Schedule are reported on the 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. The Conservancy has elected not to use the 10-percent 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.
On April 26, 2020, the Entity obtained an Economic Injury Disaster Loan totaling $500,000 from the Small Business Administration (SBA). Monthly payments, including principal and interest, of $2,136 will begin on April 26, 2021. The loan has an interest rate is 2.75% and matures on April 26, 2050. The outstanding balance at December 31, 2022 was $492,015. The loan is not included on the Schedule for 2022 as there are no continuing compliance requirements for the loan other than repayment.