Notes to SEFA
Title: Loan/loan guarantee outstanding balances.
Accounting Policies: 1. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Cornerstone and is presented on the accrual basis of accounting. The information in this 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 (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Cornerstone, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cornerstone.
2. Summary of Significant 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Cornerstone has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
3. Loan and Loan Guarantee Programs
Cornerstone has received loans funded by programs of U.S. Department of Housing and Urban Development for which there are continuing federal compliance requirements. The loan balances outstanding at the beginning of the year plus loan advances during the year are included in the federal expenditures presented in the Schedule.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimus cost rate.
US Dept of Housing and Urban Development: passed through the City of Eugene - Community Development Block Grants/Entitlement Grants (14.218) - Balances outstanding at the end of the period were $175,155. US Dept of Housing and Urban Development: passed through the City of Eugene - HOME Investment Partnership Program (14.239) - Balances outstanding at end of the period were $342,296. Total outstanding loan balances at end of the period were $517,451