Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: The federal programs included in the accompanying SEFA are accounted for using the accrual basis of accounting and the same significant accounting policies, where applicable, as those used for the basic financial statements of HOPE, with the following exception: - For purpose of the SEFA, federal expenditures of awards made by the Community Development Financial Institution (CDFI) Fund through its CDFI Program, Capital Magnet Funds, and CDFI Rapid Recovery Program consist of eligible financial products disbursed to eligible borrowers in the form of loan receivables in HOPEs financial statements.
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 SEFA) includes all federal awards administered by Hope Federal Credit Union (HOPE) under programs of the federal government. The information in the SEFA 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 SEFA presents only a selected portion of the operations of Hope Federal Credit Union, it is not intended to and does not present the financial position, results of operations, or cash flows of HOPE. Further, the federal awards granted to HOPE were for financial assistance and no funds were expended in the form of loans payable to the federal government; loan guarantees; federal funded insurance; or noncash assistance.