Notes to SEFA
Title: Basis of Presentation
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: A cost rate was not used
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Southeast Kentucky Economic Development Corporation, Inc. under programs of the federal government for the year ended June 30, 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). Because the Schedule presents only a selected portion of the operations of Southeast Kentucky Economic Development Corporation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Southeast Kentucky Economic Development Corporation, Inc.
Title: Summary of Significant Accounting Policies
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: A cost rate was not used
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.
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.
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: A cost rate was not used
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 $1,800,488, and Community Development Financial Institutions Fund with loan outstanding of $516,530 at June 30, 2023.
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: A cost rate was not used
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.