Notes to SEFA
The City received a CARES Act Economic Development Administration revolving loan funds pursuant to an Economic Development Administration Loan Grant of the U.S. Department of Commerce grant #04-79-07548 and ALN #11.307. The accounts for these loan funds are reported in the basic financial statements under the Redevelopment Program Fund. The amount reported on the Schedule of Expenditures of Federal Awards is calculated in accordance with the EDA’s final rule issued on January 27, 2010 and published in the Federal Register (75 FR 4529). This rule requires that each EDA RLF grant be calculated as follows: (1) Balance of RLF loans outstanding at year-end ($2,461,944) plus, (2) the cash and investment balance in the revolving loan fund as of year-end ($288,035) plus, (3) administrative expenses paid out of RLF income during the year ended June 30, 2025 ($8,191) and administrative funds paid using award funds designated for administrative expenses through the year ended June 30, 2025 ($0) plus, (4) the unpaid principal of all loans written off during the year ended June 30, 2025 ($0). The federal participation rate for the Economic Adjustment Assistance grant is 100%. The federal share of the RLF is the sum of the preceding four items multiplied by the federal participation rate percentage ($2,758,170.), which is reported as the amount of expenditures of the Economic Adjustment Assistance program on the Schedule of Expenditure of Federal Awards.
Matching costs, i.e., the non-federal share of certain program costs, are not included in the accompanying schedule.
The City of Columbia receives funds under various federal grant programs, and such awards are to be expended in accordance with the provisions of the various grants. Compliance with the grants is subject to audit by various government agencies which may impose sanctions in the event of non-compliance. Management believes that they have complied with all aspects of the various grant provisions and the results of adjustments, if any, relating to such audits would not have any material financial impact.