Notes to SEFA
Title: Note 3 - EDA Revolving Loan Funds
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal award activity of PACE Finance
Corporation 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 Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The amount of federal expenditures is computed as defined in the Department of
Commerce Economic Development Revolving Loan Fund (RLF) Guidelines. The guidelines
define current year expenditures as the grantee’s fiscal year ending balance of
outstanding loans, plus cash and investment balances, the amount of RLF income
earned, and the amount expended on eligible administrative costs during the fiscal year.
Total expenditures at December 31, 2023 was calculated as follows: