Audit 347348

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in 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: The Agency has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of Iowa Northland Regional Council of Governments (the Agency) under programs of the federal government for the year ended June 30, 2024. 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 the Agency, it is not intended to and does not present the financial position, changes in financial position or cash flows of the Agency.

Title: FEDERAL LOAN PROGRAM Accounting Policies: Expenditures reported in 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: The Agency has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The federal loan program for Federal Assistance Listing No. 11.307 Economic Adjustment Assistance is administered directly by the Agency and includes a revolving loan fund (RLF). The amount of the expenditures for this revolving loan fund is based on 1) the balance of RLF loans outstanding at the end of the year, 2) cash and investment balances in the RLF at the end of the year, 3) administrative expenses paid out of the RLF during the year and 4) the amount of RLF loans written off during the year. Calculated expenditures for the year ended June 30, 2024 are as follows: Grant Number 05-79-06007 Balance of RLF Loans Outstanding 6/30/24 $ 396,866 RLF Cash 6/30/24 99,585 Administrative Expense Paid Out in 2024 3,506 Principal Balance Written Off in 2024 - Total 499,957 Federal Percentage 100% Amount Included on Schedule of Expenditures of Federal Awards $ 499,957