Audit 46117

Title: Loan/loan guarantee outstanding balances Accounting Policies: 1. Summary of Significant Accounting Policies: Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs administered by Buffalo and Erie County Regional Development Corporation (RDC), an entity as defined in Note1 to RDC's basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the SEFA. Expenditures are calculated as required by the Uniform Guidance or the applicable program and do not constitute actual program disbursements. All expenditures reported on the SEFA represent revolving loan programs. The Economic Adjustment Assistance CARES Act program, administered by the EDA, specifically requires the amount on the SEFA to be calculated as follows: Cash ($355,435) + balance of loans outstanding ($4,851,861) + administrative expenses ($96,545) - loan write-offs ($0) = $5,303,841. The award is 100% funded through EDA. Basis of Accounting: RDC uses the accrual basis of accounting for each federal program, consistent with the financial statements. The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable programs and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program, which are periodically reconciled with RDC's financial reporting system. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. COVID-19 - ECONOMIC ADJUSTMENT ASSISTANCE (11.307) - Balances outstanding at the end of the audit period were 4851861.