Audit 318520

Title: LOANS OUTSTANDING Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all of the federal grant programs of the California School Finance Authority (the Authority). The Authority’s reporting entity is defined in Note 1 of the Authority’s financial statements. Expenditures of federal awards are amounts received directly from federal agencies. Basis of Accounting - funds of the Authority. The accompanying SEFA is presented using the modified accrual basis of accounting for expenditures. Relationship to Financial Statements - Federal award expenditures reported in the accompanying SEFA agree, or can be reconciled, in all material respects, to amounts reported in the Authority’s financial statements. Loans issued under the Charter School Enhancement Program, ALN #84.354, are not expenditures of the Authority. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis indirect cost rate for federal programs. The Authority also issued loans for credit enhancement for bond issuances under the Charter School Enhancement Program, ALN 84.354A. During the fiscal year ended June 30, 2023, loans in the amount of $10,110,802 were issued. As of June 30, 2023, $32,799,554 in loans are outstanding. These loans are due back to the Authority upon bond maturity, bond refinancing, or charter school closure.