The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of IFF under programs of the federal government for the year ended December 31, 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 Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the activities of IFF, it is not intended to and does not present the financial position, changes in net assets, or cash flows of IFF.
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. Based on the guidance set forth by the Department of Treasury, balances presented on the Schedule under CDFI Capital Magnet Fund and Community Development Financial Institutions Bond Guarantee Program represent funds applied toward eligible uses, as currently outlined in the respective Assistance Agreements. The balance presented on the Schedule represents the total of the following amounts: (1) the amount of the bonds outstanding at the beginning of the grantee's fiscal year, plus (2) any funds drawn down in the grantee's fiscal year to add to the bonds outstanding balance. Based on the guidance set forth by the Department of Education, balances presented on the Schedule under the Credit Enhancement for Charter School Facilities Program represent the total of the following amounts: (1) the amount in the reserve fund at the beginning of the grantee's fiscal year, plus (2) any funds drawn down in the grantee's fiscal year to add to the reserve fund, plus (3) any earnings on the reserve account.
IFF was awarded a grant in the amount of $8,000,000 by the U.S. Department of Education (DOE) through a program titled “Credit Enhancement for Charter School Facilities” in August 2005. IFF received another $10,000,000 grant in July 2007 and another $2,000,000 grant in August 2018. The terms of the grants require IFF to use the grant funds to provide credit support to bond obligations or loan financing of qualified charter schools in order to help these schools address their facilities renovation, construction and acquisition needs. Grant proceeds are maintained in DOE-permitted bank accounts. Interest earned on the grant proceeds is to be reinvested for future credit support.
None.
In September 2014, IFF entered into a $25,000,000 financing arrangement with the CDFI Fund Bond Guarantee Program (BGP) through CRF QI, LLC, a Qualified Issuer. Under this program, the Secretary of the Treasury provides a guarantee for the repayment of the full amount issued to the eligible CDFIs (Community Development Financial Institutions) for eligible community or economic development purposes for a period not to exceed 30 years. IFF has drawn down all $25,000,000 of this total facility in amortizing debt with terms of either 25- or 26-years under the agreement to refinance eligible projects. The last draw was in 2017. The CDFI bond guarantee program is considered a large loan or loan guarantee program. The total amount in the Schedule is an amount equivalent to the balance of prior year bonds outstanding. The total bond amount outstanding at December 31, 2025, is $17,097,297. In October 2024, IFF entered into a $75,000,000 financing arrangement with the BGP through CRF QI, LLC. As of December 31, 2025, IFF has not drawn down any of this $75,000,000 facility. Amounts pledged under the Credit Enhancement grants, the cash for which is maintained in separate accounts (and is net of certain expenses), totaled $18,545,086 at December 31, 2025. As of December 31, 2025, there have not been any payment defaults or delinquencies requiring utilization of the pledge funds.
IFF has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance.