Notes to SEFA
Title: SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The accompanying schedules of expenditures of federal and state and other awards include the federal and state contract and grant activity of Rural Enterprises of Oklahoma, Inc., (REI) and are presented on the accrual basis of accounting. The information in the schedule of expenditures of federal awards (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, some amounts presented in these schedules may differ from amounts presented in, or used in, the preparation of the consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: REI has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E – Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. REI's summary of significant accounting policies is presented in Note 1 in REI's basic financial statements.
Federal Loan Programs
Note 9 of REI's consolidated financial statements discloses a loan program from the SBA (Assistance Listing Number (ALN) 59.046) with outstanding note payable loan balance of $242,603 at December 31, 2024. Loans made from the SBA program are ongoing and there were no new loans made in the current year.
The outstanding loan receivable balance at December 31, 2024, for loans made under the USDA (ALN 10.382) and SBA (ALN 59.046) programs, which were $1,587,313 and $205,227, respectively.
REI participates in the SBA Community Advantage Loan Program to meet the needs of small businesses in underserved markets. It provides mission-based lenders focused on economic development access to 7(a) loan guarantees for loans of $250,000 or less. REI maintains $5,000,000 in Director and Officers and Errors and Omissions Insurance as required by the Federal Loan Programs it administers.
Title: ECONOMIC DEVELOPMENT CLUSTER
Accounting Policies: The accompanying schedules of expenditures of federal and state and other awards include the federal and state contract and grant activity of Rural Enterprises of Oklahoma, Inc., (REI) and are presented on the accrual basis of accounting. The information in the schedule of expenditures of federal awards (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, some amounts presented in these schedules may differ from amounts presented in, or used in, the preparation of the consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: REI has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Federal expenditures in 2024 under the Economic Development Cluster (ALN 11.307) as determined in accordance with Uniform Guidance were as follows:
Economic Adjustment Assistance Loan Program:
See the Notes to the SEFA for chart/table.