Title: 3. LOANS AND LOAN GUARANTEES OUTSTANDING
Accounting Policies: This accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of South Eastern Development Foundation (SEDF) under programs of the federal government for the year ended December 31, 2023. 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). Because the Schedule presents only a selected portion of the operations of SEDF, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of SEDF. 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, where in certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: SEDF has not elected to use the 10% de minimis cost rate, as allowed under Uniform Guidance.
In accordance with the Uniform Guidance, § 200.502 Basis for determining Federal awards expended, since the Federal government is at risk for loans until the debt is repaid, the amount to be presented as expenditure of federal awards for loans awarded, included those awarded and expended in prior years that have continuing compliance requirements, is:
(1) Value of new loans made or received during the audit period; plus
(2) Beginning of the audit period balance of loans from previous years for which the Federal government imposes continuing compliance requirements; plus
(3) Any interest subsidy, cash, or administrative cost allowance received. Accordingly, the Organization has reported loans awarded in accordance with the aforementioned criteria.
Amounts presented as expenditures of federal awards for loan programs by federal CFDA are as follows:
10.767 59.062
Loan balance outstanding at December 31, 2022 $ 2,554,607 $ 581,011
Value of new loans issued during 2023 with current
year advances
181,774 -
Principal paid during 2023 (99,360) (57,120)
Loan balance, end of year $ 2,637,021 $ 523,891
Title: 4. BASIS FOR DETERMINGING EXPENDITURES OF FEDERAL AWARDS FOR THE ECONOMIC ADJUSTMENT ASSISTANCE PROGRAM, FEDERAL ASSISTANCE LISTING NUMBER 11.307
Accounting Policies: This accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of South Eastern Development Foundation (SEDF) under programs of the federal government for the year ended December 31, 2023. 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). Because the Schedule presents only a selected portion of the operations of SEDF, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of SEDF. 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, where in certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: SEDF has not elected to use the 10% de minimis cost rate, as allowed under Uniform Guidance.
The Office of Management and Budget (OMB) Compliance Supplement formula to determine the amount to be presented on the schedule of expenditures of federal awards for revolving loan fund (RLF) grants under federal assistance listing number 11.307. The formula to determine expenditures to be reported in the Schedule is as follows:
(1) The balance of RLF loans outstanding at the end of the recipient’s fiscal year, plus;
(2) The cash and investment balance in the RLF at the end of the fiscal year, plus;
(3) Administrative expenses paid out of the RLF during the year, plus;
(4) The unpaid principal of all loans written off during the year, and then multiply this sum by;
(5) The federal share of the RLF based on the federal grant rate as specified in the grant award.
According, SEDF has reported expenditures of federal awards for its Economic Adjustment Assistance funded RLF program as follows:
05-57-04742 05-79-05957 05-79-06032
Balance of RLF loans outstanding at
December 31, 2023
$ 3,317,917 $ 596,066 $ 3,274,065
Cash balance in the RLF at
December 31, 2023
1,622,081 435,812 333,454
Administrative expenses paid out of the
RLF income during the year
93,340 20,481 97,394
Unpaid principal of all RLF loans written
off during the year
- - -
Total RLF loan pool $ 5,033,338 $ 1,052,359 $ 3,704,913
The Federal share of the RLF loan pool 56.09% 80.00% 100%
$ 2,823,321 $ 841,887 $ 3,704,913