The Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal grant activity of Capital Regional Development Council (“the Organization”), under programs of the federal government for the year ended September 30, 2025. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Uniform Guidance. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Expenditures reported on the Schedule are presented on the same basis of accounting as the Organization’s financial statements. The Organization uses the accrual basis of accounting. Expenditures represent only the federally funded portions of the program. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs could be more than shown. Such expenditures are recognized following, as applicable, either the cost principles in the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements, wherein certain types of expenditures are not allowable or are limited to reimbursement.
In accordance with OMB Uniform Guidance, major programs are determined using a risk-based approach. Programs in the accompanying Schedule are determined by the independent auditor to be major programs.
The Organization has two revolving loan programs that are covered by the Schedule of Expenditures of Federal Awards. One revolving loan fund, the Intermediary Relending Program, IRP, (held by U.S. Department of Agriculture) is to alleviate poverty and increase economic activity and employment in rural communities. Under this federal program, repayments to the Organization are considered program revenues (income) and loans of such funds to eligible recipients are considered expenditures. The second revolving loan fund, the Intermediary Lending Pilot Program, ILPP, (held by U.S. Small Business Administration) is to eligible small business to be used for working capital, real estate, or for the acquisition of materials, supplies, furniture, fixtures or equipment. Under this federal program, repayments to the Organization are considered program revenues (income) and loans of such funds to eligible recipients are considered expenditures. Expenditures classified as loans in the Schedule include beginning of the audit period balances for loans from previous years for which the Federal government imposes continuing compliance requirements. Federal loans included in the Schedule have the following balances at September 30, 2025: See the notes to the SEFA for chart/table
The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.