Audit 321259

Accounting Policies: GENERAL - The accompanying Schedule of Expenditures of Federal Awards presents the federal grant activity of Cooperativa de Ahorro y Crédito Vegabajeña 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 Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. BASIS OF ACCOUNTING -The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 to the financial statements and following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. SCHEDULE NOT IN AGREEMENT WITH OTHER FEDERAL AWARDS REPORTING - The information included in the Schedule may not fully agree with other federal awards reports, submitted directly to federal grantor agency because, among other reasons, the award report may (a) be prepared for a different fiscal period, (b) include cumulative data (from prior years) rather than data from the current year only, (C) certain timing differences may exist in the recognition of revenues and expenditures between the Schedule of Expenditures of Federal Awards, federal financial reports and the accrual basis of accounting. ASSISTANCE LISTING NUMBER - The Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number is a five-digit number assigned in the awarding document for all federal assistance award mechanisms, including federal grants and cooperative agreements. Assistance listings are detailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.gov assistance listing is the publicity available online database showing all available Federally-Funded Programs. MAJOR PROGRAMS - Major programs are identified in the Summary of Auditor’s Results Section of the Schedule of Findings and Questioned Costs. INDIRECT COST RATEThe Cooperative did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. FUNDS TO SUBRECIPIENTS - Cooperativa de Ahorro y Crédito Vegabajeña did not disburse funds to subrecipients for the year ended December 31, 2023. USAGE OF FEDERAL AWARDS - In agreement and compliance with authorized CDFI Awards, Cooperativa de Ahorro y Crédito Vegabajeña elected to use the federal awards received to contribute to capital reserve and certain operating expenses. For the year ended December 31, 2023, Cooperativa de Ahorro y Crédito Vegabajeña contributed $3,000,000 to their capital reserve and used $173,028 for operating expenses. RELATIONSHIP TO FINANCIAL STATEMENTS De Minimis Rate Used: N Rate Explanation: The Cooperative did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance.