Notes to SEFA
Title: Loan Programs
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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Southeast Kentucky Economic Development Corporation, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Southeast Kentucky Economic Development Corporation, Inc. has balances outstanding on federally funded loan programs. Included in the Schedule is Intermediary Relending Program with loans outstanding of $2,413,075 and Community Development Financial Institutions Fund with a loan outstanding of $516,530 at June 30, 2024.
Title: SBA Community Advantage (CA) Pilot Loan Program Loan Loss Reserves
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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Southeast Kentucky Economic Development Corporation, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
As part of the SBA CA program, a minimum of 5% of the unguaranteed portion of the CA Lender’s CA loan portfolio must be deposited in Loan Loss Reserve Account no later than 45 calendar days after the date of each CA loan disbursement. Southeast Kentucky Economic Development Corporation, Inc. is in compliance with this requirement.
Also, a minimum of 3% of the guaranteed portion of each CA loan that is sold into the secondary market must be deposited in Loan Loss Reserve Account no later than 10 calendar days after the CA loan has been sold into the secondary market. This requirement does not apply to Southeast Kentucky Economic Development Corporation, Inc. as they do not sell loans in the secondary market.
Title: Department of Commerce Economic Adjustment Assistance Expenditure Calculation
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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Southeast Kentucky Economic Development Corporation, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Federal expenditures presented on the Schedule for Economic Adjustment Assistance program are calculated as follows:
Balance of RLF principal outstanding on loans $869,380
Cash and investment balance in the RLF $320,412
Administrative expenses paid using RLF income $16,101 Administrative expense due to General Fund $(35,196)
Total $1,170,697
Multiply by Federal Percentage (per original award) 100%
Federal Expenditures $1,170,697