Notes to SEFA
Title: Note 2. Basis of Determination of Federal Awards
Accounting Policies: The Schedule of Expenditures of Federal Awards includes the federal award activity of Kentucky Highlands Investment Corporation and Subsidiaries and is presented on the accrual basis of accounting. Significant accounting policies used in preparing the Schedule of Expenditures of Federal Awards are the same as those used to prepare the consolidated financial statements and are disclosed in Note 1 to the consolidated financial statements (pages 10 of 49 through 14 of 49). Kentucky Highlands Investment Corporation and Subsidiaries did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee used an indirect cost rate of 25% as approved by the Department of Health and Human Services.
The Supplementary Schedule of Expenditures of Federal Awards includes the federal award activity of Kentucky Highlands Investment Corporation and Subsidiaries. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion of the operations of Kentucky Highlands Investment Corporation and Subsidiaries, it is not intended to and does not present the financial position, change in net assets, or cash flows of Kentucky Highlands Investment Corporation and Subsidiaries.
Title: Note 3. Reconciliation of Support to SEFA Expenditures
Accounting Policies: The Schedule of Expenditures of Federal Awards includes the federal award activity of Kentucky Highlands Investment Corporation and Subsidiaries and is presented on the accrual basis of accounting. Significant accounting policies used in preparing the Schedule of Expenditures of Federal Awards are the same as those used to prepare the consolidated financial statements and are disclosed in Note 1 to the consolidated financial statements (pages 10 of 49 through 14 of 49). Kentucky Highlands Investment Corporation and Subsidiaries did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee used an indirect cost rate of 25% as approved by the Department of Health and Human Services.
See the Notes to the SEFA for chart/table.
Title: Note 4. Loans Outstanding
Accounting Policies: The Schedule of Expenditures of Federal Awards includes the federal award activity of Kentucky Highlands Investment Corporation and Subsidiaries and is presented on the accrual basis of accounting. Significant accounting policies used in preparing the Schedule of Expenditures of Federal Awards are the same as those used to prepare the consolidated financial statements and are disclosed in Note 1 to the consolidated financial statements (pages 10 of 49 through 14 of 49). Kentucky Highlands Investment Corporation and Subsidiaries did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee used an indirect cost rate of 25% as approved by the Department of Health and Human Services.
Kentucky Highlands Investment Corporation had the following loan balances (notes payable to federal agencies) outstanding at March 31, 2024. Loans made (loans receivable) from federal loan funds received during the fiscal year ended March 31, 2024, are included in the federal expenditures presented in this schedule. Beginning of year outstanding loan balances that require significant continued compliance monitoring are included in the federal expenditures presented in the Supplementary Schedule of Expenditures of Federal Awards. The proceeds of loans that were received and expended in prior years are not considered federal awards expended when the laws, regulations, and the provisions of contracts or grant agreements pertaining to such loans impose no continuing compliance requirements other than to repay the loans and have been excluded from the Supplementary Schedule of Expenditures of Federal Awards.
See the Notes to the SEFA for chart/table.