Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Commission under programs of the federal government for the year ended December 31, 2022. 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). Because the Schedule presents only a selected portion of the operations of the Commission, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Commission.
Title: Revolving Loan Fund
Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Commission administers a revolving loan fund program, which was funded by U.S. Department of Commerce Economic Adjustment Assistance grant and local matching contributions (ended July 21, 2022), and a CARES Act Supplemental U.S. Department of Commerce, Economic Development Administration (EDA) award for Revolving Loan Fund Grant Recipients where there are no local matching requirements. July 21, 2022, the EDA agreed to release the federal interest in the Capital Base of EDA Financial Assistance Award Numbers 06-39-02257, 06-39-02257.01, 06-39-02257.02 and 06-79-05613.The Assistance Listing Number associated with the release of federal interest is 11.307. The amount of Federal expenditures for the year ended December 31, 2022, was determined as follows: ECONOMIC ADJUSTMENT ASSISTANCE (11.307) - Balances outstanding at the end of the audit period were $2,000,053 (7/21/2022). COVID-19 ECONOMIC ADJUSTMENT ASSISTANCE (11.307) - Balances outstanding at the end of the audit period were $3,495,684.