Notes to SEFA
Title: USDA COMMUNITY FACILITIES LOAN
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Evanston Child Development Center, Inc. (ECDC) and is presented on the accrual basis of accounting. The information in this 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.
De Minimis Rate Used: N
Rate Explanation: ECDC did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Prior to 2022’s compliance supplement, Community Facilities (CF) loans did not have continuing compliance requirements and thus were not required to be audited under 2 CFP Part 200, Subpart F in years after project completion. However, USDA changed this position and determined that CF loans should have continuing compliance requirements. Therefore, any outstanding balance of the loan at the beginning of audit period should be considered federal awards expended, included in determining Type A programs, and reported on the Schedule of Expenditures of Federal Awards.