Notes to SEFA
Title: Note 4. Loans Outstanding
Accounting Policies: The Schedule of Expenditures of Federal Awards includes the federal award activity of Kentucky Highlands Investment Corporation and Subsidiaries and is presented on the accrual basis of accounting. Significant accounting policies used in preparing the Schedule of Expenditures of Federal Awards are the same as those used to prepare the consolidated financial statements and are disclosed in Note 1 to the consolidated financial statements (pages 11 of 46 through 14 of 46). Kentucky Highlands Investment Corporation and Subsidiaries did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
INTERMEDIARY RELENDING PROGRAM (10.767) - Balances outstanding at the end of the audit period were 6643276. BUSINESS AND INDUSTRY LOANS (10.768) - Balances outstanding at the end of the audit period were 13867138. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM (10.870) - Balances outstanding at the end of the audit period were 1540599. COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - Balances outstanding at the end of the audit period were 22871848. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS BOND GUARANTEE PROGRAM (21.014) - Balances outstanding at the end of the audit period were 7175833. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS PROGRAM (21.020) - Balances outstanding at the end of the audit period were 2000000. 7(A) LOAN GUARANTEES (59.012) - Balances outstanding at the end of the audit period were 167177. MICROLOAN PROGRAM (59.046) - Balances outstanding at the end of the audit period were 1706640.
Title: Note 2. Basis of Determination of Federal Awards
Accounting Policies: The Schedule of Expenditures of Federal Awards includes the federal award activity of Kentucky Highlands Investment Corporation and Subsidiaries and is presented on the accrual basis of accounting. Significant accounting policies used in preparing the Schedule of Expenditures of Federal Awards are the same as those used to prepare the consolidated financial statements and are disclosed in Note 1 to the consolidated financial statements (pages 11 of 46 through 14 of 46). Kentucky Highlands Investment Corporation and Subsidiaries did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Supplementary Schedule of Expenditures of Federal Awards includes the federal award activity of Kentucky Highlands Investment Corporation and Subsidiaries. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion of the operations of Kentucky Highlands Investment Corporation and Subsidiaries, it is not intended to and does not present the financial position, change in net assets, or cash flows of Kentucky Highlands Investment Corporation and Subsidiaries.
Title: Note 3. Reconciliation of Support to SEFA Expenditures
Accounting Policies: The Schedule of Expenditures of Federal Awards includes the federal award activity of Kentucky Highlands Investment Corporation and Subsidiaries and is presented on the accrual basis of accounting. Significant accounting policies used in preparing the Schedule of Expenditures of Federal Awards are the same as those used to prepare the consolidated financial statements and are disclosed in Note 1 to the consolidated financial statements (pages 11 of 46 through 14 of 46). Kentucky Highlands Investment Corporation and Subsidiaries did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Total support for the fiscal year ended March 31, 2022$5,027,376Add:Beginning balance of loans as of April 1, 202156,412,573New loans made 2,835,333Less:CDFI Grant not expended (532,265)Other non-federal sources (441,548)Total Expenditures of Federal Awards for the fiscal year ended March 31, 2022 $63,301,469