Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Craft3 and Subsidiaries (Craft3) under programs of the federal government for the year ended December 31, 2025. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Craft3, it is not intended to and does not present the financial position, functional expenses, changes in net assets, or cash flows of Craft3.
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.
Craft3 has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
Federal loans outstanding with continuing compliance requirements are considered as expenditures on the Schedule as of the ending notes payable balance from the prior year plus any new loans in the current year. The outstanding note payable balances as of December 31, 2025, consist of: 10.767 Intermediary Relending Program $3,324,317 10.766 Community Facilities Loan and Grants $4,165,928 59.062 Intermediary Loan Program $356,412