Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal awards activity of Upper Manhattan Empowerment Zone Development Corporation (“UMEZ”) under programs of the federal government for the year ended June 30, 2025. The information in the 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 UMEZ, it is not intended to and does not present the financial position, changes in net assets or cash flows of UMEZ.
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.
The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The balances of loans as of June 30, 2025, for which the federal government imposes continuing compliance requirements, are as follows.
UMEZ is only responsible for the performance of certain administrative duties with respect to U.S. Department of the Treasury loans disbursed, and not responsible for any ongoing compliance requirements. Therefore, the transactions and the balances of loans outstanding are only the amounts loaned during the year ended June 30, 2025.