Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Nonprofit Finance Fund (NFF) 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 (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of NFF, it is not intended to and does not present the financial position, changes in net assets or cash flows of NFF.
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.
NFF reports federal awards expended for this program in accordance with 2 CFR 200.502(a), which states that the determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards. Federal expenditures for the program represent funds actually used during the fiscal year for authorized credit enhancement purposes, such as actual administrative expenses and any credit loss payments utilizing credit enhancement dollars incurred during the fiscal year. To provide clarity regarding the scale of the federal Credit Enhancement reserve that supports NFF’s activities under this program, the following information presents the program activities for the fiscal year: See the Notes to the SEFA for chart/table. These disclosures are provided for transparency but do not represent federal awards expended under the Uniform Guidance. The reserve balance remains a restricted asset until funds are spent for allowable costs. Activations represent internal designations for credit enhancement and do not constitute expenditure for the purposes of §200.502(a). Reserve, activation, and interest amounts are therefore excluded from federal expenditures.
During the year ended December 31, 2025, NFF received no non-monetary assistance.
NFF has not elected to use the 10% de minimis indirect cost rate (for awards and amendments to existing awards made before October 1, 2024) and the 15% de minimis indirect cost rate (for new federal awards issued on or after October 1, 2024).