Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the Schedule) arereported on the accrual basis of accounting. Such expenditures are recognized following the costprinciples contained in the Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement. Negative amounts shown on the Schedulerepresent adjustments or credits made in the normal course of business to amounts reported asexpenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
INTERMEDIARY RELENDING PROGRAM (10.767) - Balances outstanding at the end of the audit period were 804755. INTERMEDIARY LOAN PROGRAM (59.062) - Balances outstanding at the end of the audit period were 577277. The Organization has the following outstanding federal loans. These loan balances outstandingare also included in the federal expenditures presented in the schedule due to ongoingcompliance requirements.Federal AL BalanceNumber OutstandingIntermediary Relending Program I 10.767 $ 202,996Intermediary Relending Program II & III 10.767 362,933Intermediary Relending Program IV 10.767 238,826Intermediary Loan Program 59.062 577,277Total federal loans outstanding $ 1,382,032
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the Schedule) arereported on the accrual basis of accounting. Such expenditures are recognized following the costprinciples contained in the Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement. Negative amounts shown on the Schedulerepresent adjustments or credits made in the normal course of business to amounts reported asexpenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The accompanying Schedule includes the federal award activity of Dakota Business Lending andSubsidiary under programs of the federal government for the year ended December 31, 2022.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 Schedulepresents only a selected portion of the operations of Dakota Business Lending and Subsidiary, itis not intended to and does not present the financial position, changes in net assets, or cash flowsof Dakota Business Lending and Subsidiary.