Notes to SEFA
Title: Note 1 - Basis of Presentation
Accounting Policies: Expenditures reported in the SEFA are reported on the modified accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the default 10% de minimis indirect cost rate allowed
under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant
activity of Institute Capital (the “Organization”) under the programs of the federal government
and the State of North Carolina for the year ended December 31, 2023. This information in this
schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit
Requirements for Federal Awards. Because the Schedule presents only a selected portion of the
operations of the Organization, it is not intended to and does not present the financial position,
changes in net assets or cash flows of the Organization.
Title: Note 2 - Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported in the SEFA are reported on the modified accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the default 10% de minimis indirect cost rate allowed
under the Uniform Guidance.
Expenditures reported in the SEFA are reported on the modified accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 - Indirect Costs
Accounting Policies: Expenditures reported in the SEFA are reported on the modified accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the default 10% de minimis indirect cost rate allowed
under the Uniform Guidance.
The Organization has elected not to use the default 10% de minimis indirect cost rate allowed
under the Uniform Guidance.
Title: Note 4 – Neighborhood stabilization program
Accounting Policies: Expenditures reported in the SEFA are reported on the modified accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the default 10% de minimis indirect cost rate allowed
under the Uniform Guidance.
Federal expenditures of $2,154,609 per the Schedule are recorded as a program liability at
December 31, 2023. The Organization reported a program liability of $2,154,609 at
December 31, 2023. NSP loans receivable of $1,217,958 for the year ending December 31,
plus accrued interest thereon of $389,949 for the year ending December 31, 2023, is due
from various community development corporations. These loans, as modified in 2022, have a
maturity date of December 31, 2024; however, repayment of principal and accrued interest is
anticipated as properties securing the loans are sold. The change in the NSP liability in 2023 is
due to the change in interest accrued on NSP loans receivable. Refer also to Note 8 in
the accompanying financial statements for a further description of this award.