Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures are recognized following the cost principles contained in Subpart E CostPrinciples of the Uniform Guidance, wherein certain types of expenditures are not allowableor are limited as to reimbursement. CPLCs summary of significant accounting policies ispresented in Note 1 in the basic consolidated financial statements.CPLC has elected to use a negotiated indirect cost rate for the year ended June 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards and other governmentalawards includes the federal grant activity of Chicanos Por La Causa, Inc. and Subsidiariesand Affiliates (CPLC), and is presented on the accrual basis of accounting. The informationin this schedule is presented in accordance with the requirements of the Uniform Guidance.CPLC received federal awards both directly from federal agencies and indirectly throughpass-through entities. Federal financial assistance provided to a subrecipient is treated asan expenditure when it is pad to the subrecipient. Because the Schedule presents only aselected portion of the operations of CPLC, it is not intended to and does not present thefinancial position, changes in net assets, or cash flows of CPLC.
Title: Catalog of Federal Domestic Assistance (CFDA) Numbers
Accounting Policies: Expenditures are recognized following the cost principles contained in Subpart E CostPrinciples of the Uniform Guidance, wherein certain types of expenditures are not allowableor are limited as to reimbursement. CPLCs summary of significant accounting policies ispresented in Note 1 in the basic consolidated financial statements.CPLC has elected to use a negotiated indirect cost rate for the year ended June 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The program titles and CFDA numbers were obtained from the federal or pass-throughgrantor or the 2022 Catalog of Federal Domestic Assistance.
Title: Loan Programs
Accounting Policies: Expenditures are recognized following the cost principles contained in Subpart E CostPrinciples of the Uniform Guidance, wherein certain types of expenditures are not allowableor are limited as to reimbursement. CPLCs summary of significant accounting policies ispresented in Note 1 in the basic consolidated financial statements.CPLC has elected to use a negotiated indirect cost rate for the year ended June 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures reported in this schedule consist of the beginning of the year outstanding loanbalance plus advances made on the loan during the year. The outstanding balance atJune 30, 2022 for the Small Business Administration loans, Federal AssistanceListing #59.046, was $1,673,644.