Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant and contract activity of Building Hope Finance (Finance) and is presented on the accrual basis of accounting which conforms to accounting principles generally accepted in the United States of America and is consistent with Finance’s basic financial statements. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of Finance, it is not intended to and does not present the financial position, change in net assets, or cash flows of Finance.
At December 31, 2024, Finance holds cash, cash equivalents, certificates of deposit, and investments funded by the federal government (Credit Enhancement for Charter School Facilities Program - ALN #84.354A). These funds are held under the terms of a federal grant and may be used both for program costs and to pay claims under Finance’s guarantees. The following schedule provides an accounting for the changes in the reserve account for the year ended December 31, 2024: See the Notes to the SEFA for chart/table
At December 31, 2024, Finance had loan balances outstanding of $1,995,284 to the U.S. Department of Agriculture and a $14,369,364 loan to a third party guaranteed by the U.S. Department of Treasury.
Included in expenses in the accompanying consolidated financial statements are federal expenditures of $10,965. In addition, there are funds held under the terms of a federal grant totaling $6,705,729. Both the expenses and the reserve fund are reported to the awarding federal agency and Federal Audit Clearinghouse in a separate schedule of expenditures of federal awards, under America’s Charter School Finance Corporation (America’s Charter).