Notes to SEFA
Title: SUBSIDIARIES
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of New York State Urban Development Corporation and Subsidiaries and is presented on the accrual basis. The information in this schedule is presented in accordance with Requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the general purpose consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: Indirect costs are included in the reported expenditures to the extent that such costs are included in the Federal financial reports used as the source for the data presented. The de minimis election allows the Corporation to allocate 10% of indirect costs to grants with periods ending on or before September 30, 2024 and 15% of indirect costs to grants with periods after September 30, 2024. The Corporation does not use the de minimis election.
Subsidiaries receiving federal awards which are included in the schedule of expenditures of federal awards are as follows:
• Harlem Community Development Corporation
• New York Empowerment Zone Corporation
Title: LOWER MANHATTAN DEVELOPMENT CORPORATION
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of New York State Urban Development Corporation and Subsidiaries and is presented on the accrual basis. The information in this schedule is presented in accordance with Requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the general purpose consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: Indirect costs are included in the reported expenditures to the extent that such costs are included in the Federal financial reports used as the source for the data presented. The de minimis election allows the Corporation to allocate 10% of indirect costs to grants with periods ending on or before September 30, 2024 and 15% of indirect costs to grants with periods after September 30, 2024. The Corporation does not use the de minimis election.
The schedule of expenditures of federal awards does not include $4,869,063 in federal expenditures of LMDC, a subsidiary of New York State Urban Development Corporation. LMDC has elected to have a separate audit performed in accordance with the requirements of the Uniform Guidance.
Title: STATE SMALL BUSINESS INITIATIVE
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of New York State Urban Development Corporation and Subsidiaries and is presented on the accrual basis. The information in this schedule is presented in accordance with Requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the general purpose consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: Indirect costs are included in the reported expenditures to the extent that such costs are included in the Federal financial reports used as the source for the data presented. The de minimis election allows the Corporation to allocate 10% of indirect costs to grants with periods ending on or before September 30, 2024 and 15% of indirect costs to grants with periods after September 30, 2024. The Corporation does not use the de minimis election.
The Corporation has included $24,194,273 from revolving loan funds with State Small Business Credit Initiative (SSBCI) funds in the schedule of expenditures of federal awards. The loan fund activity as required by the U.S. Department of Commerce for the year ended March 31, 2025 is as follows:
SSBCI loan balances at the beginning of the year $ 9,860,939
Additions 14,333,334
SSBCI loan balances at the end of the year $ 24,194,273