Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal award activity of R.E.A.L., Inc. for the year ended December 31, 2025, and 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). The SEFA is prepared on the accrual basis of accounting. Accordingly, expenditures are recognized when the related costs are incurred
During the year ended December 31, 2025, Rural Economic Assistance League, Inc. had no sub-recipients.
The Organization had outstanding balances associated with federally assisted housing loan programs as of December 31, 2025. The following table summarizes the balances and related Assistance Listing numbers, subject to confirmation of the applicable federal program classifications: Assistance Listing Number Federal Program Outstanding Balance 10.415 Rural Rental Housing Loans — USDA $ 204,527 10.423 Community Facilities Loans — USDA 294,295 14.157 Section 202 Direct Loans and Capital Advances — HUD 1,615,891 Total $2,114,713 No new federal loan proceeds were received during the year ended December 31, 2025. The outstanding mortgage balances have not been included as federal expenditures in the accompanying Schedule of Expenditures of Federal and State Awards because the Organization has determined that these balances are not subject to continuing federal compliance requirements other than repayment. In accordance with 2 CFR 200.502(d), outstanding loan balances for which the remaining federal requirement is repayment are not reported as federal expenditures. Separately, the Organization received HUD capital advances totaling $2,639,400 for Casa Real Projects IV and V in prior years. These advances are subject to housing-use restrictions and potential repayment provisions, as further described in Note 9 to the combined financial statements. They are not included in the outstanding mortgage balances presented above
During the year ended December 31, 2025, Rural Economic Assistance League, Inc. had no federally funded insurance.
During the year ended December 31, 2025, Rural Economic Assistance League, Inc., did not have any federal and state awards in the form of noncash assistance.
The Organization elected to use a de minimis indirect cost rate of 10% of modified total direct costs for the year ended December 31, 2025. Under the applicable Uniform Guidance provisions, eligible recipients and subrecipients may elect a de minimis indirect cost rate of up to 15% of modified total direct costs. The Organization's elected rate was 10%.