Audit 31609

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1 - Summary of Significant Accounting PoliciesThe accompanying Schedule of Expenditures of Federal Awards included herein represents the Federal grant activity of the South Florida Regional Council (the Council).Basis of PresentationThe information in this schedule is presented in accordance with accounting principles generally accepted in the United States and the requirements of Title 2, Part 200 of the Code of Federal Regulations (2 CFR part 200). Some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements.Basis of AccountingThe expenditures in the accompanying Schedule of Expenditures of Federal Awards are presented using the accrual basis of accounting. The accrual basis recognizes expenses when they are incurred.Note 2 - Indirect Cost RateThe Council has not elected to use the 10 percent de minimis cost rate allowed under the Uniform Guidance.Note 3 - Loans ReceivableThe Schedule of Expenditures of Federal Awards (SEFA) for EDA RLF grant (CFDA 11.307, contract # 04-89-03952) shows as a separate line item calculated as follows: 1.Balance of RLF loans outstanding at the end of the fiscal year, plus 2.Cash and investment balance in the RLF at the end of the fiscal year, plus 3.Administrative expenses paid out of RLF income during the fiscal year; plus 4.The unpaid principal of all loans written off during the fiscal year; and then multiply this sum (1+ 2 +3+4) by5.The Federal share of the RLF. The Federal share is defined as the Federal participation rate (or the Federal grant rate) as specified in the grant award. In March 2021, the Council was notified that the EDA Consolidated Revolving Loan Fund was defederalized by the Economic Development Agency.The balance of RLF loan receivables outstanding as of September 30, 2022, are as follows: Note 4 - ContingenciesGrant monies received and disbursed by the Council are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the Council does not believe that such disallowances, if any, would have a material effect on the financial position of the Council. As of June 28, 2022, management is not aware of any material questioned or disallowed costs as a result of grant audits in process or completed; however, the possible disallowance by a governmental agency of any item charged to a program or project cannot be determined at this time. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. ECONOMIC ADJUSTMENT ASSISTANCE (11.307) - Balances outstanding at the end of the audit period were 5372929.