Notes to SEFA
The accompanying schedule of expenditures of federal and state awards include the federal grant activity of LIFT Community Action Agency, Inc. and Subsidiary (the Organization), under programs of the federal government for the year ended December 31, 2025. The information in the schedules 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 operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows.
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.
SOCDC has received a low-interest note directly from the Rural Microentrepreneur Assistance Program ("RMAP"), federal Assistance Listing No. 10.870, to fund loans to small businesses that promote economic development in rural areas. The RMAP note payable balance as of January 1, 2025 was $100,000. SOCDC received advances of $35,674 during the year ended December 31, 2025. The note payable balance at January 1, 2025 plus advances received during 2025, which totals $135,674, is considered federal awards because the funds are subject to continuing federal compliance requirements and is included as a component of total RMAP federal program expenditures on the accompanying schedule of expenditures of federal awards. The balance of the RMAP note payable at December 31, 2025 was $135,674.
LIFTCAA has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance.