Title: Note A - Basis of Presentation
Accounting Policies: The expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Association has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Pacific Fleet Submarine Memorial Association, Inc., dba USS Bowfin Submarine Museum and Park (Association) and is presented on the accrual basis of accounting. The information in the 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, certain amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements
Title: Note B - Summary of Significant Accounting Policies
Accounting Policies: The expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Association has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note C - Indirect Cost Rates
Accounting Policies: The expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Association has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Association has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note D - Loan and Loan Guarantee
Accounting Policies: The expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Association has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
In July 2019, the Association obtained a $14,540,000 loan commitment from the U.S. Department of Agriculture (USDA) Community Facilities Loans and Grants Program, of which an amount not to exceed $11,000,000 will be a direct loan from the USDA and $3,540,000 will be a loan from a financial institution that the USDA will guarantee, to finance the cost of its museum renovations, capital improvements, and repairs. Loan advances (none in 2024) received during the year are included in the federal expenditures presented in the Schedule. In July 2021, the loan commitment was terminated with a total of $12,906,216 being advanced. $11,000,000 of the advances was converted to a term loan with the USDA and the remaining balance of $1,906,216 was converted to a term loan with Bank of Hawaii (BOH). The loan with BOH was retired at stated value in October 2022. The balance of loans outstanding at December 31, 2024 amounted to $9,531,557 and is included in the Association’s financial statements.