Notes to SEFA
The accompanying schedule of expenditures of federal awards and schedule of expenditures of state financial assistance present the activity of all federal awards and state financial assistance of the Organization. The Organization is defined in Note 1 of the Notes to the Financial Statements. All federal awards and state financial assistance passed through other governmental agencies are included on the schedule of expenditures of federal awards and schedule of state financial assistance.
The accompanying schedules of expenditures of federal awards and state financial assistance include the federal and state grant activity of Cooperative Business Assistance Corporation and are presented on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards (Uniform Guidance), and New Jersey State Treasury Circular Letter 15-08-OMB, Compliance Supplement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
The Organization applied and was approved for an indirect cost rate of 32% for the year ended June 30, 2022 with their cognizant agency the Small Business Administration (SBA). The Organization is currently using the provisional rate of 30.9% for the period July 1, 2022 to June 30, 2025 until the current application is approved.
The Organization has an EDA revolving loan fund (RLF) under the Economic Adjustment Assistance Program, CFDA 11.307. According to the OMB Compliance Supplement, for purposes of completing the Schedule of Expenditures of Federal Awards (SEFA), each EDA RLF (CFDA 11.307) should be shown as a separate line item calculated as follows: 1. Balance of RLF loans outstanding at the end of the recipient’s fiscal year, plus 2. Cash and investment balance in the RLF at the end of the recipient’s fiscal year, plus 3. Administrative expenses paid out of RLF income during the recipient’s fiscal year, plus 4. The unpaid principal of all loans written off during the recipient’s fiscal year; and then multiply this sum (1+2+3+4) by 5. The Federal share of the RLF. The Federal share is defined as the Federal participation rate (or the Federal grant rate) as specified in the grant award. SEE THE NOTES TO SEFA FOR CHART/TABLE