5. Loans and Loan Guarantees Outstanding In accordance with the Uniform Guidance, §200.502 Basis for determining Federal awards expended, since the federal government is at risk for loans and loan guarantees awarded until the debt is repaid, the amount to be presented as expenditures of federal awards for loans and loan guarantees awarded, including those awarded and expended in prior years that have continuing compliance requirements, is: (1) Value of new loans or loan guarantees made or received during the audit period; plus (2) Beginning of the audit period balance of loans and loan guarantees from previous years for which the federal government imposes continuing compliance requirements; plus (3) Any interest subsidy, cash, or administrative cost allowance received. Accordingly, SCED has reported loans and loan guarantees awarded in accordance with the aforementioned criteria. Amounts presented as expenditures of federal awards for loan and loan guarantee programs by federal assistance listing number are as follows: IRP 2007 IRP 2008 IRP 2009 IRP 2010 10.767 10.767 10.767 10.767 Value of new loans made $ - $ - $ - $ - Value of new loan guarantees made - - - - Loan balance, beginning of the year 275,940 275,938 312,328 330,248 Total expenditures of federal awards presented for loan and loan guarantee programs 275,940 275,938 312,328 330,248 Balance of loans and loan guarantees at June 30, 2025 $257,474 $ 257,469 $ 294,226 $ 312,326
6. Basis for Determining Expenditures of Federal Awards for the Economic Adjustment Assistance Program, Federal CFDA 11.307 The Office of Management and Budget (OMB) Compliance Supplement formula to determine the amount to be presented on the schedule of expenditures of federal awards for revolving loan fund (RLF) grants under federal CFDA 11.307. The formula to determine expenditures to be reported in the Schedule is as follows: (1) The balance of RLF loans outstanding at the end of the recipient's fiscal year, plus; (2) The cash and investment balance in the RLF at the end of the fiscal year, plus; (3) Administrative expenses paid out of the RLF during the year, plus; (4) The unpaid principal of all loans written off during the year; and then multiply this sum by; (5) The federal share of the RLF based on the federal grant rate as specified in the grant award. Accordingly, SCED has reported expenditures of federal awards for its Economic Adjustment Assistance funded RLF program as follows: RLF 2017 RLF 2019 RLF CARES 11.307 11.307 11.307 Balance of RLF loans outstanding at June 30, 2025 $ 111,814 $ 173,154 $ 84,912 Cash balance in RLF at June 30, 2025 1,118,555 1,576,277 1,052,498 Administrative expenses paid out of the RLF during the year 58,721 71,406 54,710 Unpaid principal of all RLF loans written off during the year - - - Total RLF loan pool 1,289,090 1,820,837 1,192,120 The Federal share of the RLF loan pool 50.00% 86.93% 100% Total RLF expenditures for year ending June 30, 2025 $ 644,545 $1,582,840 $1,192,120