Title: Subrecipients
Accounting Policies: Expenditures – Expenditures reported on 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 to reimbursement.
Grant, Award, or Other Identifying Number – Grant or award numbers are presented where available. The U.S. Small Business Administration 7(a) loan guarantee program does not have grant or award numbers available. The basis of the identifying numbers provided on the schedule of expenditures of federal awards for the contracts are the dates of the award or loan guarantee agreements.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The Organization did not provide federal awards to subrecipients during the year ended December 31, 2024.
Title: Nonmonetary Assistance
Accounting Policies: Expenditures – Expenditures reported on 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 to reimbursement.
Grant, Award, or Other Identifying Number – Grant or award numbers are presented where available. The U.S. Small Business Administration 7(a) loan guarantee program does not have grant or award numbers available. The basis of the identifying numbers provided on the schedule of expenditures of federal awards for the contracts are the dates of the award or loan guarantee agreements.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The Organization neither received nor disbursed federal awards in the form of nonmonetary assistance during the fiscal year ended December 31, 2024, except as described in Note 8.
Title: Donated Personal Protective Equipment (unaudited)
Accounting Policies: Expenditures – Expenditures reported on 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 to reimbursement.
Grant, Award, or Other Identifying Number – Grant or award numbers are presented where available. The U.S. Small Business Administration 7(a) loan guarantee program does not have grant or award numbers available. The basis of the identifying numbers provided on the schedule of expenditures of federal awards for the contracts are the dates of the award or loan guarantee agreements.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The Organization did not receive any in-kind donations of personal protective equipment that was funded by direct or pass through federal awards.
Title: Loans and Loan Guarantees
Accounting Policies: Expenditures – Expenditures reported on 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 to reimbursement.
Grant, Award, or Other Identifying Number – Grant or award numbers are presented where available. The U.S. Small Business Administration 7(a) loan guarantee program does not have grant or award numbers available. The basis of the identifying numbers provided on the schedule of expenditures of federal awards for the contracts are the dates of the award or loan guarantee agreements.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
In accordance with the Uniform Guidance, §200.502 Basis for determining Federal awards expended, since the federal government is at risk for loans and loan guarantees awarded until the debt is repaid, the amount to be presented as expenditures of federal awards for loans and loan guarantees awarded, including those awarded and expended in prior years that have continuing compliance requirements, is:
(1) Value of new loans or loan guarantees made or received during the audit period; plus
(2) Beginning of the audit period balance of loans and loan guarantees from previous years for which the federal government imposes continuing compliance requirements; plus
(3) Any interest subsidy, cash, or administrative cost allowance received.
Accordingly, the Organization has reported loans and loan guarantees awarded in accordance with the aforementioned criteria. Amounts presented as expenditures of federal awards for loan and loan guarantee programs by federal program and Assistance Listing Number (ALN) are as follows:
See the Notes to the SEFA for chart/table.
Title: Basis for Determining Expenditures of Federal Awards for the Economic Adjustment Assistance Program, Federal ALN 11.307
Accounting Policies: Expenditures – Expenditures reported on 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 to reimbursement.
Grant, Award, or Other Identifying Number – Grant or award numbers are presented where available. The U.S. Small Business Administration 7(a) loan guarantee program does not have grant or award numbers available. The basis of the identifying numbers provided on the schedule of expenditures of federal awards for the contracts are the dates of the award or loan guarantee agreements.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The Office of Management and Budget (OMB) Compliance Supplement section 4-11.300 provides a formula to determine the amount to be presented on the schedule of expenditures of federal awards for revolving loan fund (RLF) grants under federal ALN 11.307. The formula to determine expenditures to be reported in the Schedule is as follows:
(1) The balance of RLF loans outstanding at the end of the recipient’s fiscal year, plus;
(2) The cash and investment balance in the RLF at the end of the fiscal year, plus;
(3) Administrative expenses paid out of the RLF during the year, plus;
(4) The unpaid principal of all loans written off during the year; and then multiply this sum by;
(5) The federal share of the RLF based on the federal grant rate as specified in the grant award.
Accordingly, the Organization has reported expenditures of federal awards for its Economic Adjustment Assistance funded RLF program as follows:
See the Notes to the SEFA for chart/table.
Title: Expenditures of Federal Awards for COVID-19 Coronavirus State and Local Fiscal Recovery Fund ALN 21.027
Accounting Policies: Expenditures – Expenditures reported on 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 to reimbursement.
Grant, Award, or Other Identifying Number – Grant or award numbers are presented where available. The U.S. Small Business Administration 7(a) loan guarantee program does not have grant or award numbers available. The basis of the identifying numbers provided on the schedule of expenditures of federal awards for the contracts are the dates of the award or loan guarantee agreements.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Included in expenditures of federal awards for the amounts passed through by the City of Chicago Department of Business Affairs and Consumer Protection under ALN 21.027 with a award identification number of 246880/1278148 are $5,745,099 received where the Organization does not have variance power, and accordingly were recorded as a liability on the Organizations statement of financial position when received and a reduction of that liability when they were disbursed in 2024 because management has determined that the Organization is acting as an agent on behalf of the grantor. Also included in expenditures of federal awards are an additional $77,293 of interest rate subsidies used to buy down the interest rate on loans issued to beneficiaries under the grant program. The remaining $820,125 of expenditures of federal awards under this ALN are expenditures of funding under the grant where the Organization is not acting as a fiscal agent and are recorded as expenses on the Organization’s statement of activities.