Notes to SEFA
Title: Note 1 Basis of Presentation
Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting, except for the loan balances as discussed below. 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. (2) Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of accompanying schedule of expenditures of federal awards(the Schedule) includes the federal award activity of African Development Center underprograms of the federal government for the year ended December 31, 2022. The informationin this Schedule is presented in accordance with the requirements of 2 CFR Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of theoperations of African Development Center, it is not intended to and does not present thefinancial position, changes in net assets, or cash flows of African Development Center.
Title: Note 4 Loans and Loan Guarantee
Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting, except for the loan balances as discussed below. 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. (2) Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Federal expenditures for the Small Business Administration Loan Guarantees programinclude $1,166,986 of loan guarantees outstanding from the previous year for which thegrantor imposes continuing compliance requirements. The guarantees represent 75% - 90%of the total loan balances, depending on the size of the loan. The loan balances are as of December 31, 2021, plus the amount of new loans issued during 2022 ($187,500).Federal expenditures for the Small Business Administration Microloan program represent$564,649 of loans outstanding from the previous year for which the grantor imposescontinuing compliance requirements. The loan balances are as of December 31, 2021, plus the amount of new loans issued during 2022 ($155,000). The loan balances of federal loan programs were funded by Small Business Administration and as of December 31, 2022 are as follows: Program Title; Loan Balance; Loans Advanced in Current Years: SBA Loan Guarantees / $1,084,941 / $187,500; SBA Microloan Program / $480,195 / $155,000