Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal award activity of Delta Area Economic Opportunity Corporation 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).
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.
Delta Area Economic Opportunity Corporation has not elected to use the de minimis indirect cost rate allowed under the Uniform Guidance. The Organization does have a negotiated indirect cost agreement (NICRA).
The accompanying Schedule of Expenditures of Federal Awards includes the outstanding balances as of January 1, 2025, of the HOME Community Housing Development Organization forgivable loan and the USDA Rural Development Section 515 Rural Rental Housing loans because the Federal Government imposes continuing compliance requirements on these loans. Related interest subsidies, principal subsidies, and other applicable Federal assistance received during the year are also included in Federal expenditures, as applicable. The outstanding loan balances as of December 31, 2025, were as follows: HOME Community Housing Development Organization loan, $1,913,400.00, Valley View Apartments III Section 515 loan, $564,763.93, and Scott City Apartments II Section 515 loan, $166,025.87, Total outstanding Federal loan balances were $2,644,189.80 as of December 31, 2025.