Notes to SEFA
BFCOG has a revolving loan program, EDA CARES COVID Relief Revolving Loan Fund. In July 2020, the BFCOG received a non-competitive Revolving Loan Fund grant for $1,400,000 plus $140,000 for administrative expenses from EDA. The fund is designed to respond to the urgency of the COVID-19 pandemic. The deadline for distributing funds under this grant award was June 30, 2022. At that time, any unrequested funds under the award reverted to the EDA. Because funds were provided by reimbursement, the returned funds became inaccessible. Funds were not physically “returned” to EDA, adjusting the initial RLF loan fund balance to $980,000. Under this federal program, repayments to the BFCOG EDA CARES Revolving Loan Fund are considered program revenues (income), and loans of such funds to eligible recipients are considered expenditures. The amount of loan funds disbursed to program participants for the year was $0 and is presented in this Schedule. The principal and interest received in loan repayments for the year were $347,968.55.
The current-year expenditures show only the federal award portion of the program costs. The entire program costs, including the BFCOG portion, are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The Council of Governments has a Revolving Loan Fund to provide loans due to the urgency of the COVID-19 pandemic. Under this federal grant, expenses are calculated as principal balance outstanding plus cash and investment balance of funds on hand, plus loan-related expenses paid out of income during the fiscal year.