Notes to SEFA
Title: Revolving loan funds
Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of program activity of the Associatioin's federal award programs and does not necessarily present transactions that would be included in financial statements of the association presented on the modified accrual basis of accounting, as contemplated by generally accepted accounting principles. The information in the schedule is presented in accordance with the requirements of Title 2 US code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Requirements for Federal Awards (the Uniform Guidance). Because the schedule presents only a selected portion of the operations of the association, it is not intended to and does not present the financial position, changes in finanical position, or cash flows of the association.
De Minimis Rate Used: N
Rate Explanation: The association has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance. Rather, rates are negotiated with each granting agency as grants are renewed or contracted.
Beginning in 2008, the Economic Development Administration included instructions on how to include expenditures for revolving loan funds on the schedule of expenditures of federal awards (SEFA). These expenditures are actually the funds beginning capital base reflected by any current activity.