Notes to SEFA
Title: COMPLIANCE TEST
Accounting Policies: THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS HAS BEEN PREPARED ON THE ACCRUAL BASIS OF ACCOUNTING. REVENUES WERE ADJUSTED TO BALANCE THE EXPENDITURES INCURRED FOR EACH PROJECT.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
AN EXTENSIVE COMPLIANCE TEST, WAS PERFORMED ON THE COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS RAPID RESPONSE PROGRAM, WHICH REPRESENTS 68% OF THE TOTAL EXPENDITURES REFLECTED ON THE SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE. THE 40% OF COVERAGE TEST FOR A NON-LOW RISK AUDITEE WAS SATISFIED AS FOLLOWS: COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS RAPID RESPONSE PROGRAM 21.024 $975,976, COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS PROGRAM 21.020 $451,123 TOTALS $1,427,099 TIMES 40% EQUALS $570,840 MINIMUM AMOUNT WHICH MUST BE TESTED. THE COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS RAPID RESPONSE PROGRAM EXCEEDS $570,840, AND, THEREFORE, REPRESENTS THE ONLY PROGRAM TO WHICH THE SPECIFIC COMPLIANCE REQUIREMENTS MUST BE APPLIED.