Notes to SEFA
Title: NOTE 4 — LOANS OUTSTANDING
Accounting Policies: NOTE 1 — BASIS OF PRESENTATION:
The accompanying Schedule of Expenditures of Federal Awards includes all federal grants, contracts, and similar
agreements of Covenant Community Capital Corporation (Covenant) under programs of the federal government for
the year ended December 31, 2023. The information in this schedule is presented in accordance with the
requirements of Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost,
Principles, and Audits for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected
portion of the operations of Covenant, it is not intended to and does not present the financial position, results of
operations, or cash flows of Covenant Community Capital Corporation.
NOTE 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
De Minimis Rate Used: N
Rate Explanation: NOTE 3 — DE MINIMIS COST RATE
Covenant did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The mortgage balances at the beginning of the year are included in the federal expenditures presented in this
Schedule. Covenant had the following federal loan balances outstanding at December 31, 2023: Assistance Listing Number of 14.256; Subrecipient of Bay Forest; Program Title of Neighborhood Stabilization Program; Outstanding balance at December 31, 2023 of $3,056,417