Notes to SEFA
Title: COMPLIANCE TEST
Accounting Policies: The Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of
accounting. Revenues were adjusted to balance the expenditures incurred for each project.
De Minimis Rate Used: N
Rate Explanation: The Organization did not elect to use the 10% de minimis indirect cost rate permitted by the
Uniform Guidance.
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An extensive compliance test, as required by the Single Audit Act of 1996, was performed on the Community Development Financial Institutions Fund Equitable Recovery Program, which
represents 51 % of the total expenditures reflected on the Schedule of Federal Financial Assistance. The 40% of coverage test for a non-low risk auditee was satisfied as follows:
Federal Program Title Community Development Financial Institutions Fund Equitable Recovery Program 21.033 $574,342;
Community Development Financial Institutions Program 21.020 $286,795; and Appalachian Area Development 23.002 $271,944 Total $1,133,081 times 40% Minimum Amount Which Must Be Tested $453,232. The Community Development Financial Institutions Fund Equitable Recovery Program
exceeded $453,232, and, therefore, represents the only programs to which the specific compliance requirements must be applied.