Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the schedule) includes the federal awardactivity of Impact Seven, Inc. under programs of the federal government for the year ended December 31,2022. 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 AuditRequirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selectedportion of the operations of Impact Seven, Inc. and Subsidiaries (the Organization), it is not intended to anddoes not present the financial position, changes in net assets or cash flows of the Organization.Management reviews the expenditures of federal awards for each entity that comprises the Organizationand determines if a separate audit is required under the Uniform Guidance. Expenditures for the followingconsolidated subsidiaries of Impact Seven, Inc. are not included in the accompanying schedule ofexpenditures of federal awards to meet the requirements of the Uniform Guidance because they haveseparate audits under the Uniform Guidance or do not require an audit under the Uniform Guidance.Arbors of Hudson, LLC Highlander Development Corporation Impact Seven Sub CDE 9, LLCArtist Lofts MM, LLC Hoffman's Landing Housing Corporation Impact Sullivan, LLCArtist Lofts, LLC Home Conversions, Inc. Impact Wisconsin II, LLCBarron County Housing, LLC Hungry Run Housing Corporation Impact Wisconsin, LLCBay Springs Housing Corporation Impact Acceptance Corporation LBWN Rent-to-Own Homes MM, LLCBaybarry Corporation Impact Capital, LLC LBWN Rent-to-Own Homes, LLCBaybob Corporation Impact Grafton MM, LLC Lincoln School, LLCBayjack Corporation Impact Grafton, LLC Marengo Falls Housing CorporationBaysis Corporation Impact Housing Development, Ltd. Medford Affordable Housing MM, LLCBeaver Dam Lake Historic Lofts MM, LLC Impact La Crosse MM, LLC Medford Affordable Housing, LLCBeaver Dam Lake Historic Lofts, LLC Impact La Crosse, LLC Mitchell Street Market Lofts MM, LLCBrerbay Corporation Impact Management Group, LLC Mitchell Street Market Lofts SM, LLCCamp Marengo Housing Corporation Impact Milwaukee 1 MM, LLC Mitchell Street Market Lofts, LLCCentral Wisconsin Housing, Ltd. Impact Milwaukee 1, LLC Morgan Falls Development CorporationCenturia Housing, LLC Impact Milwaukee, LLC National Avenue Lofts MM, LLCChippewa River Housing Corporation Impact Mukwonago, LLC National Avenue Lofts, LLCClam Lake Housing Corporation Impact Parmenter, LLC North Housing, Inc.Coffee Lake Housing Corporation Impact Preservation Corporation Parkwood Properties, Ltd.Coulee Homes, Ltd Impact Rice Lake, LLC Pelican Lake Housing CorporationDeer Park Housing, Ltd. Impact Seven Sub CDE 10, LLC Pine Point Housing Development CorporationElliebelle Housing Corporation Impact Seven Sub CDE 11, LLC Quality Development CorporationFlambeau Housing Corporation Impact Seven Sub CDE 12, LLC Riverway Homes, Ltd.Franklin School Apartments MM, LLC Impact Seven Sub CDE 13, LLC Robert Holmes Limited PartnershipFranklin School Apartments, LLC Impact Seven Sub CDE 14, LLC Seven04 Place, LLCGandy Dancer Housing Corporation Impact Seven Sub CDE 15, LLC Shanagolden Development CorporationGates Lake Housing Development Corporation Impact Seven Sub CDE 16, LLC St. George Housing CorporationGhost Creek Housing Corporation Impact Seven Sub CDE 17, LLC St. Peter's Dome Housing CorporationGlidden Housing Corporation Impact Seven Sub CDE 18, LLC Timber Lake Housing CorporationGoodman Lake Housing Corporation Impact Seven Sub CDE 19, LLC Wilmarth Mansion, LLCGrayson Bay Housing Corporation Impact Seven Sub CDE 20, LLC Wisconsin Impact Fund II, LLCHearthstone Housing, Ltd. Impact Seven Sub CDE 7, LLCHighland Ridge Partners, LLC Impact Seven Sub CDE 8, LLC
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
RURAL RENTAL HOUSING LOANS (10.415) - Balances outstanding at the end of the audit period were 959821. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM (10.870) - Balances outstanding at the end of the audit period were 62261. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS BOND GUARANTEE PROGRAM (21.014) - Balances outstanding at the end of the audit period were 5836552.
Title: NOTE B, NOTE C, NOTE D
Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the schedule) includes the federal awardactivity of Impact Seven, Inc. under programs of the federal government for the year ended December 31,2022. 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 AuditRequirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selectedportion of the operations of Impact Seven, Inc. and Subsidiaries (the Organization), it is not intended to anddoes not present the financial position, changes in net assets or cash flows of the Organization.Management reviews the expenditures of federal awards for each entity that comprises the Organizationand determines if a separate audit is required under the Uniform Guidance. Expenditures for the followingconsolidated subsidiaries of Impact Seven, Inc. are not included in the accompanying schedule ofexpenditures of federal awards to meet the requirements of the Uniform Guidance because they haveseparate audits under the Uniform Guidance or do not require an audit under the Uniform Guidance.Arbors of Hudson, LLC Highlander Development Corporation Impact Seven Sub CDE 9, LLCArtist Lofts MM, LLC Hoffman's Landing Housing Corporation Impact Sullivan, LLCArtist Lofts, LLC Home Conversions, Inc. Impact Wisconsin II, LLCBarron County Housing, LLC Hungry Run Housing Corporation Impact Wisconsin, LLCBay Springs Housing Corporation Impact Acceptance Corporation LBWN Rent-to-Own Homes MM, LLCBaybarry Corporation Impact Capital, LLC LBWN Rent-to-Own Homes, LLCBaybob Corporation Impact Grafton MM, LLC Lincoln School, LLCBayjack Corporation Impact Grafton, LLC Marengo Falls Housing CorporationBaysis Corporation Impact Housing Development, Ltd. Medford Affordable Housing MM, LLCBeaver Dam Lake Historic Lofts MM, LLC Impact La Crosse MM, LLC Medford Affordable Housing, LLCBeaver Dam Lake Historic Lofts, LLC Impact La Crosse, LLC Mitchell Street Market Lofts MM, LLCBrerbay Corporation Impact Management Group, LLC Mitchell Street Market Lofts SM, LLCCamp Marengo Housing Corporation Impact Milwaukee 1 MM, LLC Mitchell Street Market Lofts, LLCCentral Wisconsin Housing, Ltd. Impact Milwaukee 1, LLC Morgan Falls Development CorporationCenturia Housing, LLC Impact Milwaukee, LLC National Avenue Lofts MM, LLCChippewa River Housing Corporation Impact Mukwonago, LLC National Avenue Lofts, LLCClam Lake Housing Corporation Impact Parmenter, LLC North Housing, Inc.Coffee Lake Housing Corporation Impact Preservation Corporation Parkwood Properties, Ltd.Coulee Homes, Ltd Impact Rice Lake, LLC Pelican Lake Housing CorporationDeer Park Housing, Ltd. Impact Seven Sub CDE 10, LLC Pine Point Housing Development CorporationElliebelle Housing Corporation Impact Seven Sub CDE 11, LLC Quality Development CorporationFlambeau Housing Corporation Impact Seven Sub CDE 12, LLC Riverway Homes, Ltd.Franklin School Apartments MM, LLC Impact Seven Sub CDE 13, LLC Robert Holmes Limited PartnershipFranklin School Apartments, LLC Impact Seven Sub CDE 14, LLC Seven04 Place, LLCGandy Dancer Housing Corporation Impact Seven Sub CDE 15, LLC Shanagolden Development CorporationGates Lake Housing Development Corporation Impact Seven Sub CDE 16, LLC St. George Housing CorporationGhost Creek Housing Corporation Impact Seven Sub CDE 17, LLC St. Peter's Dome Housing CorporationGlidden Housing Corporation Impact Seven Sub CDE 18, LLC Timber Lake Housing CorporationGoodman Lake Housing Corporation Impact Seven Sub CDE 19, LLC Wilmarth Mansion, LLCGrayson Bay Housing Corporation Impact Seven Sub CDE 20, LLC Wisconsin Impact Fund II, LLCHearthstone Housing, Ltd. Impact Seven Sub CDE 7, LLCHighland Ridge Partners, LLC Impact Seven Sub CDE 8, LLC
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following, as applicable, either the cost principles in office of Management and BudgetCircular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Negative amounts shown on the schedule represent adjustments or credits made in thenormal course of business to amounts reported as expenditures in prior years.NOTE C - INTEREST COST RATEThe Organization has elected not to use the 10 percent de minimus indirect cost rate allowed under theUniform Guidance.NOTE D LOAN PROGRAMThe Organization administers relending loan programs funded by the U.S. Department of Agriculture andU.S. Department of Treasury. Balances and transactions relating to this program are included in theOrganizations consolidated financial statements. The notes payable outstanding or relending fund balanceat the beginning of the year plus cash received and loans made during the year are included in the federalexpenditures presented in the schedule.Total notes payable to these agencies at December 31, 2022 are as follows:Program NameCFDA NumberOutstanding loanBalance atDecember 31, 2022Rural Rental Housing Loans 10.415 $ 959,821Rural Microentrepreneur Assistance Program 10.870 $ 62,261Community Development Financial Institutions BondGuaranty Program21.014 $ 5,836,552