Title: 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 Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit
Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are
limited as to reimbursement. Finance has elected not to use the 10percent
de minimis indirect cost
rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (“the Schedule”) includes the federal
grant and contract activity of Building Hope Finance (“Finance”) and is presented on the accrual
basis of accounting which conforms to accounting principles generally accepted in the United States
of America and is consistent with Finance’s basic financial statements. The information in the
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. Because the Schedule presents only a selected portion of the
operations of Finance, it is not intended to and does not present the financial position, change in
net assets, or cash flows of Finance.
Title: Funds Held in Reserve
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 Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit
Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are
limited as to reimbursement. Finance has elected not to use the 10percent
de minimis indirect cost
rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
At December 31, 2023, Finance holds cash, cash equivalents, certificates of deposit, and
investments funded by the federal government (Credit Enhancement for Charter School Facilities
Program - CFDA #84.354A). These funds are held under the terms of a federal grant and may be
used both for program costs and to pay claims under Finance’s guarantees. The following schedule
provides an accounting for the changes in the reserve account for the year ended December 31,
2023:
Beginning balance of reserve account $ 8,354,738
Add: award funding 33,000,000
Add: earnings on the reserve account 1,280,319
Less: federal expenditures (21,625 )
Ending balance of reserve account $ 42,613,432
Title: Loan Balances Outstanding
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 Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit
Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are
limited as to reimbursement. Finance has elected not to use the 10percent
de minimis indirect cost
rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
At December 31, 2023, Finance had loan balances outstanding of $2,037,658 to the U.S. Department
of Agriculture and $14,897,157 to the U.S. Department of Treasury.
Title: Other Reporting
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 Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit
Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are
limited as to reimbursement. Finance has elected not to use the 10percent
de minimis indirect cost
rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Included in expenses in the accompanying consolidated financial statements are federal
expenditures of $16,145. In addition, there are funds held under the terms of a federal grant totaling
$6,485,697. Both the expenses and the reserve fund are reported to the awarding federal agency
and Federal Audit Clearinghouse in a separate report, under America’s Charter School Finance
Corporation (“America’s Charter”).