Audit 356653

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the Schedule are reported on the accrual or modified 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 Council has not elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of East Central Iowa Council of Governments (the Council) 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 Council, it is not intended to and does not present the financial position, changes in financial position, or cash flows of the Council.

Title: FEDERAL LOAN PROGRAM Accounting Policies: Expenditures reported in the Schedule are reported on the accrual or modified 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 Council has not elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. The federal loan program for Federal Assisting Listing No. 11.307 Economic Adjustment Assistance is administered directly by the Council 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 05-79-06003: Balance of RFL Loans Outstanding - June 30, 2024 - 3,070,499 RLF Cash - June 30, 2024 - $1,285,928 Administrative Expenses Paid Out in 2024 - $43,643 Principal Balance Written Off in 2024 - $0.00 Total - $4,400,070 Federal Percentage - 100% Amount Included on Schedule of Expenditures of Federal Awards - $ 4,400,070