Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Flagship Enterprise Center, Inc. (the Center). The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, changes in operations, or cash flows of the Center. In addition, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. 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 or federal award guidance when such cost principles are not applicable to the specific federal award. Subrecipients: The Center provided no funds to subrecipients in 2026.
The Center has elected to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards includes seven federal loans disbursed under the Microloan Program. The Microloan Program loan agreements provide for continuing compliance requirements through debt maturity or repayment, and therefore, the Center reports the prior year loan balances, plus any additional draws made during the fiscal year, on the schedule of expenditures of federal awards. Microloan Program funds were used to finance notes receivable for the Microloan Program. The Microloan Program note payable balance outstanding was $6,791,270 as of May 31, 2026.