Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of River Valley Regional Commission (the Commission) under programs of the federal government for the fiscal year ended June 30, 2025. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Commission, it is not intended to and does not present the financial position, changes in net position or cash flows of River Valley Regional Commission.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
The Commission develops and maintains on file an indirect cost proposal in accordance with the requirements of OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (codified at 2 C.F.R. Part 200). All costs included in this proposal are properly allocable to Federal awards on the basis of a beneficial or causal relationship between the expenses incurred and the agreements to which they are allocated in accordance with applicable requirements. Further, the same costs that have been treated as indirect costs have not been claimed as direct costs. Unallowable costs have been adjusted for in allocating costs as indicated in the cost allocation plan.
The Commission utilizes a provisional indirect cost rate based upon anticipated future costs. Indirect costs are pooled in the Internal Service Fund, adjusted to actual on a monthly basis, and allocated to grants / projects by applying the indirect rate to the direct cost base of total direct salaries and respective benefits.
The Economic Development Administration Revolving Loan Program and the U.S. Department of Agriculture’s Rural Development Loan Fund and Intermediary Relending Program are administered directly by the Commission, and transactions relating to these programs are included in the Commission’s basic financial statements. Loans made during the year are included in the federal expenditures presented in the Schedule. The amounts reported as Federal expenditures for the programs are as follows:
See the Notes to the SEFA for the Loan Programs ending balances.