Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal award activity of PACE Finance Corporation (the Organization) and is presented on the accrual basis of accounting. The information in the SEFA 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). Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the financial statements.
The SEFA is presented using the accrual basis of accounting, which is described in the notes to the financial statements of the Organization as of and for the year ended December 31, 2025. The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The amount of federal expenditures is computed as defined in the Department of Commerce Economic Development Revolving Loan Fund (RLF) guidelines. The guidelines define current year expenditures as the grantee’s fiscal year ending balance of outstanding loans, plus cash and investment balances, the amount of RLF income earned, and the amount expended on eligible administrative costs during the fiscal year. Total expenditures at December 31, 2025 was calculated as follows: