Title: NOTE 3 BASIS OF PRESENTATION
Accounting Policies: Expenditures reported in the schedule of expenditures of federal awards (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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Lake Agassiz Regional Development Corporation (LARDC) has not elected the minimum indirect cost rate provided for by the Uniform Guidance, which allows for the allocation of 10% of modified total direct costs (direct salaries and wages, applicable fringe benefits, materials and supplies, services, and travel).
The schedule includes the federal award activity of LARDC under programs of the federal government for the year ended December 31, 2023. The information 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 LARDC, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of LARDC.
Title: NOTE 4 LOANS OUTSTANDING
Accounting Policies: Expenditures reported in the schedule of expenditures of federal awards (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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Lake Agassiz Regional Development Corporation (LARDC) has not elected the minimum indirect cost rate provided for by the Uniform Guidance, which allows for the allocation of 10% of modified total direct costs (direct salaries and wages, applicable fringe benefits, materials and supplies, services, and travel).
The calculation of total federal expenditures includes the beginning of year loan balances and new funds drawn, administration fees and technical assistance grant costs reimbursed. The calculation of total federal expenditures for each program are as follows:
SEE THE NOTES TO THE SEFA FOR CHART/TABLE
The loan balances outstanding for each program as of December 31, 2023 are $533,952 for the Microloan Program, $671,107, for the Intermediary Relending Program, and $258,298 for the Rural Microentrepreneurial Assistance Program.
Title: NOTE 5 ALLOCATION OF COSTS
Accounting Policies: Expenditures reported in the schedule of expenditures of federal awards (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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Lake Agassiz Regional Development Corporation (LARDC) has not elected the minimum indirect cost rate provided for by the Uniform Guidance, which allows for the allocation of 10% of modified total direct costs (direct salaries and wages, applicable fringe benefits, materials and supplies, services, and travel).
LARDC allocates a portion of overhead to two related-parties based on time spent within each entity. The related-parties share staff, office space, and other office resources. This same allocation method is used in allocating costs to the federal programs.