Notes to SEFA
Title: Basis of Presentation
Accounting Policies: 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 as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Building Charters Fund, Inc., Unitranche Capital Fund, LLC, Unitranche Capital Fund 2 LLC, Unitranche Capital Fund 3 LLC, Unitranche Capital Fund 1 LLC, and FIF Predevelopment Fund LLC (collectively, the “Organization”), under programs of the federal government for the year ended December 31, 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 Organization, it is not intended to and does not present the consolidated financial position, consolidated changes in net assets or consolidated cash flows of the Organization.
Title: Nonmonetary Assistance
Accounting Policies: 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 as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Nonmonetary assistance is reported in the Schedule based on the amount disbursed or received. The Organization received no nonmonetary assistance for the year ended December 31, 2024.
Title: Grant/Loan Awards
Accounting Policies: 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 as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
In September 2022, the Organization was awarded $12,000,000 (the “Grant”) from the U.S. Department of Education (“U.S. DOE”) under their Credit Enhancement of Charter School Facilities Program (the “Program”). The Grant covers the performance period of August 1, 2022 to September 30, 2048 as stipulated in the grant award notification.
On December 28, 2023, the Organization received the $12,000,00 from the U.S. DOE and deposited the grant funds into a segregated brokerage account in compliance with the investment guidelines under the Program. During the year ended December 31, 2024, $567,550 of interest income was earned on the grant and will be used to supplement funding the project.