Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: Montana Community Development Corporation, doing business as MoFi ("MoFi"), is the recipient of various federal funds. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of MoFi under programs of the federal government for the year ended December 31, 2022. 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 MoFi, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of MoFi. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations" and 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: Y
Rate Explanation: The auditee used the de minimis cost rate.
COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - Balances outstanding at the end of the audit period were 1652165. INTERMEDIARY RELENDING PROGRAM (10.767) - Balances outstanding at the end of the audit period were 2618174. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM (10.870) - Balances outstanding at the end of the audit period were 286176. MICROLOAN PROGRAM (59.046) - Balances outstanding at the end of the audit period were 2613288.
Title: Note 7 - EDA loan fund
Accounting Policies: Montana Community Development Corporation, doing business as MoFi ("MoFi"), is the recipient of various federal funds. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of MoFi under programs of the federal government for the year ended December 31, 2022. 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 MoFi, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of MoFi. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations" and 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: Y
Rate Explanation: The auditee used the de minimis cost rate.
During 2020, MoFi received funding directly from the U.S. Department of Commerce Economic Development Assistance ("EDA") loan fund, federal Assistance Listing No. 11.307, under the Coronavirus Aid, Relief, and Economic Security Act. The federal portion of the loan fund and associated cash and other assets and liabilities is considered a federal award due to continuing compliance requirements for the life of the program. The amount of federal funds of $1,656,787 expended in the accompanying Schedule reflects the cumulative amounts received and deployed to date for the program exclusive of the nonfederal share of matching funds required by the program initially.