Notes to SEFA
Title: Subrecipients
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of federal award programs administered by the Corporation, which is described in note 1 to the Corporation’s accompanying financial statements, using the accrual basis of accounting. Federal awards that are included in the schedule have been passed through from CalHFA. The information is presented in accordance with the requirements of the Uniform Guidance. The amounts reported in the schedule are prepared from records maintained for each program, which are reconciled with the Corporation’s financial reporting system.
De Minimis Rate Used: N
Rate Explanation: Indirect costs are included in the reported expenditures to the extent that such costs are included in the Federal financial reports used as the source for the data presented. The Corporation did not use indirect costs and therefore did not elect to use the 10% de minimis election.
On January 1, 2022, the Corporation entered into a $15 million subrecipient agreement with Sierra Health Foundation - Center for Health Program Management, a non-profit California corporation, to act as intermediary to contract with a statewide network of community based organizations for MRP outreach services using targeting metrics, and training materials provided by the Corporation. The agreement was amended on December 20, 2022, effective September 1, 2022, reducing the amount of the agreement to a total of $7.5 million.
On April 1, 2022, CalHRC entered into a $12 million subrecipient agreement with the State Bar of California, a public corporation, to facilitate competitive grants to its statewide network of legal services organizations including California Qualified Legal Service Projects and Support Centers. These organizations provide clients with access to legal professionals who are knowledgeable in foreclosure prevention, mortgage lending and servicing, and other matters related to preserving sustainable homeownership for borrowers who generally cannot afford to pay for such legal services.