Notes to SEFA
Title: Loans
Accounting Policies: Basis of presentation
The accompanying schedule of expenditures of federal awards includes the federal loan activity of CEN-TEX
Certified Development Corporation and Affiliates 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 (CFR)
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts
presented in, or used in the presentation of the consolidated financial statements.
Summary of significant accounting policies
Expenditures - Expenditures related to the federal loan programs represent the full outstanding balance of
each note payable as required by U.S. Office of Management and Budget (OMB) Compliance Supplement.
Expenditures related to other federal programs are reported on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
In accordance with the Uniform Guidance, § 200.502 Basis for determining Federal awards expended, since
the Federal government is at risk for loans until the debt is repaid, the amount to be presented as
expenditure of federal awards for loans awarded, included those awarded and expended in prior years that
have continuing compliance requirements, is:
(1) Value of new loans made or received during the audit period; plus
(2) Beginning of the audit period balance of loans from previous years for which the Federal government
imposes continuing compliance requirements; plus
(3) Any interest subsidy, cash, or administrative cost allowance received.
Accordingly, the Organization has reported loans awarded in accordance with the aforementioned criteria.
Amounts presented as expenditures of federal awards for loan programs by federal CFDA are as follows:
10.767 10.870 59.062 10.766
Loan balance, beginning of year $ 2,226,520 $ 58,228 $ 524,255 $ 755,982
Value of new loans made - - - -
Total expenditures of federal awards
presented for loan programs $ 2,226,520 $ 58,228 $ 524,255 $ 755,982
Loan balance, end of year $ 2,131,418 $ 46,038 $ 524,255 $ 741,427