Title: Note 1. Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: PCAP did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Partner Community Capital, Inc. (“PCAP”) under programs of the federal government for the year ended December 31, 2023. The information in the Schedule of Expenditures of Federal Awards 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of PCAP, it is not intended to and does not present the financial position, changes in net assets, or cash flows of PCAP.
Title: Note 2. Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: PCAP did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3. Indirect Cost Rate
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: PCAP did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
PCAP did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 4. Intermediary Relending Program (IRP)
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: PCAP did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The IRP provides loanable funds to small entities. An entity that receives an IRP loan from the Rural Business-Cooperative Service (RBS) is referred to as an intermediary. Intermediaries must relend all of the loan funds received from the IRP loan for business facilities or community development in rural areas. An entity that receives a loan from an intermediary is referred to as an ultimate recipient. The maximum loan to any one intermediary is $2 million. The maximum term is 30 years, and the interest rate is 1% per annum. Intermediaries may not use IRP funds to finance more than 75% of the cost of an ultimate recipient’s project or for a loan of more than $250,000 to one ultimate recipient.
As of December 31, 2023, PCAP had seven loans payable outstanding under this program. The outstanding IRP loan payable balance was $2,486,427 at December 31, 2022. During the year ended December 31, 2023, PCAP made repayments of $133,090 on the loans. These loans are secured by pledged loan receivables of $2,836,084 and restricted cash of $1,348,927. The amount of $2,856,427 is included in federal expenditures under Federal ALN Number 10.767. PCAP has undrawn funds of $267,500 under the IRP at December 31, 2023. As of December 31, 2023, the outstanding IRP loan payable $2,723,337.
Title: Note 5. Rural Microentrepreueur Assisance Program (RMAP)
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: PCAP did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The RMAP provides microloans to encourage the development of small businesses in rural areas. The maximum loan amount is $50,000. As of December 31, 2023, PCAP had one loan payable outstanding under this program. As of December 31, 2022, the outstanding RMAP loan payable balance was $404,851. During the year ended December 31, 2023, PCAP made repayments of $26,768 on the loan. This loan is secured by pledged loan receivables of $27,790 and restricted cash of $329,928. The amount of $404,851 is included in federal expenditures under Federal ALN Number 10.870. As of December 31, 2023, the outstanding RMAP loan payable $378,083.