Title: Assistance from U.S. Department of Treasury
Accounting Policies: The accompanying schedule of expenditures of federal and city awards (the "Schedule") presents the grant activities of the federal and city award programs of Reinvestment Fund, Inc. and Affiliates (Reinvestment Fund or the "Organization") for the year ended December 31, 2022. The information in the Schedule is presented in accordance with 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) and the City of Philadelphia Subrecipient Audit Guide. Because the Schedule presents only a selected portion of the operations of Reinvestment Fund, Inc. and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Reinvestment Fund, Inc. and Affiliates. All federal financial assistance received directly from federal or city agencies as well as such financial assistance passed through state or city agencies, other governmental agencies or not-for-profit organizations are included on the Schedule. Pennsylvania state financial assistance awards not received from the City of Philadelphia are not required to be part of an audit in accordance with the City of Philadelphia Subrecipient Audit Guide and therefore, such Pennsylvania state financial assistance is not reflected in the Schedule. Expenditures reported on the Schedule are reported on the 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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Reinvestment Fund does not use the 10% de miniumus rate permitted under the Uniform Guidance.
Community Development Financial Institutions (CDFI) Bond Guarantee Program (Bond Program): Through the Bond Program, Reinvestment Fund was approved to borrow $55,000,000 and $75,000,000 in 2014 and 2016, respectively. The Bond Program gives Reinvestment Fund access to long-term fixed rate capital for terms of up to 29.5 years. The 2014 and 2016 bond programs are fully deployed. As required by the program, Reinvestment Fund entered into a loan agreement with CRF QI, LLC (Qualified Issuer). As a condition of the program, Reinvestment Fund must pledge eligible collateral to draw down on the loan. Under the program, the bonds are purchased by The Federal Financing Bank and the U.S. Treasury guarantees repayment of those bonds. The federal expenditure presented in the Schedule under Assistance Listing Number 21.014 of $45,032,000 represents the bond loan payable at January 1, 2022 for the 2014 bond program. The federal expenditure of $69,808,117 represents the bond loan payable at January 1, 2022 for the 2016 bond program. As of December 31, 2022, the total bond loans payable for the 2014 bond program and 2016 bond program were $43,043,526 and $67,186,296 respectively, secured by pledged loans receivable of approximately $44,610,000 and $72,255,000, respectively, and restricted cash of approximately $201,000 and $249,000, respectively.Capital Magnet Fund Program: During 2020, the Organization entered into an assistance agreement with the CDFI Fund in the amount of $3,750,000 in support of the Capital Magnet Fund Program (CMF). In accordance with the agreement, these funds are to be used to support rental affordable housing activities in underserved markets. CMF awards are considered federal awards expended upon allocation of the funds towards one of the eligible uses of the assistance, as outlined in the assistance agreement. During 2022, the Organization allocated $3,100,000 towards eligible uses; as such, this amount is included in federal expenditures in the Schedule under Assistance Listing Number 21.011. During 2018, the Organization entered into an assistance agreement with the CDFI Fund in the amount of $4,500,000 in support of the Capital Magnet Fund Program (CMF). In accordance with the agreement, these funds are to be used to support rental affordable housing activities in underserved markets. CMF awards are considered federal awards expended upon allocation of the funds towards one of the eligible uses of the assistance, as outlined in the assistance agreement. During 2022, the Organization allocated $1,316,000 towards eligible uses, which was from program income earned and reinvested in the program; as such, this amount is included in federal expenditures in the Schedule under Assistance Listing Number 21.011.CDFI Program: The Organization was awarded a financial assistance award of $5,016,530 from CDFI Fund during the year ended December 31, 2022. The funds are considered federal awards expended once the awardee expenses the funds for the authorized uses as outlined in the assistance agreement. The Organization expended $4,723,006 during the year ended December 31, 2022; as such, this amount is included in federal expenditures in the Schedule under Assistance Listing Number 21.020.Coronavirus State and Local Fiscal Recovery Fund: During 2022, the Organization received a grant from the Pennsylvania CDFI Network, which was funded by the Coronavirus State and Local Fiscal Recovery Fund, to provide lending, grants and technical assistance to small business or nonprofits. During 2022, the Organization provided $5,950 of funding to businesses; as such, this amount is included in federal expenditures in the Schedule under Assistance Listing Number 21.027.
Title: Assistance from U.S. Department of Education
Accounting Policies: The accompanying schedule of expenditures of federal and city awards (the "Schedule") presents the grant activities of the federal and city award programs of Reinvestment Fund, Inc. and Affiliates (Reinvestment Fund or the "Organization") for the year ended December 31, 2022. The information in the Schedule is presented in accordance with 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) and the City of Philadelphia Subrecipient Audit Guide. Because the Schedule presents only a selected portion of the operations of Reinvestment Fund, Inc. and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Reinvestment Fund, Inc. and Affiliates. All federal financial assistance received directly from federal or city agencies as well as such financial assistance passed through state or city agencies, other governmental agencies or not-for-profit organizations are included on the Schedule. Pennsylvania state financial assistance awards not received from the City of Philadelphia are not required to be part of an audit in accordance with the City of Philadelphia Subrecipient Audit Guide and therefore, such Pennsylvania state financial assistance is not reflected in the Schedule. Expenditures reported on the Schedule are reported on the 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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Reinvestment Fund does not use the 10% de miniumus rate permitted under the Uniform Guidance.
(a)During the 2005 fiscal year, the Organization entered into a grant agreement with Capital Impact Partners (previously NCB Capital Impact) to share grant funds of $3,600,000 awarded by the United States Department of Education (US ED) under the Credit Enhancement for Charter School Facilities Program. Capital Impact Partners and the Organization have agreed to each utilize $1,800,000 to act as a first loss reserve for the charter school loans originated by each organization. (b)During the 2006 fiscal year, the Organization received grant funds of $10,000,000 from US ED under the Credit Enhancement for Charter School Facilities Program. The Organization agreed to utilize funds to leverage funding of charter schools in accordance with Performance Agreement.In prior years, two charter school loans, which were enhanced by the funding from Credit Enhancement for Charter School Facilities Program under US ED, were determined to be impaired. Accordingly, $3,127,829 was drawn down from the grant reserve account.(c)During the 2010 fiscal year, the Organization entered into a grant agreement with Capital Impact Partners and received $2,366,228 of US ED funds from Capital Impact Partners to utilize as a first loss reserve for the charter school loans originated by the Organization. During the year ended 2016, the Organization entered into a grant agreement with Capital Impact Partners and received an additional $1,352,339 of US ED funds from Capital Impact Partners for the same purpose. (d)During the year ended December 31, 2014, the Organization received grant funds of $6,019,231 from US ED under the Credit Enhancement for Charter School Facilities Program. The Organization agreed to utilize funds to leverage funding of charter schools in accordance with Performance Agreement. (e)During the year ended December 31, 2018, the Organization entered into a grant agreement with Low Income Investment Fund (LIIF) and received $2,000,000 of US ED funds from LIIF to utilize as a first loss reserve for the charter school loans originated by the Organization. The Organization invested the grant funds received in separate grant reserve accounts in accordance with the requirements of the grants. The federal expenditure of $23,454,777 presented in the Schedule under Federal Assistance Listing Number 84.354A represents the amount in the reserve accounts at the beginning of the year of $23,346,142 plus 2022 net investment income of $108,635. The reserve accounts as of December 31, 2022 consist as follows: See Notes to SEFA for the table.
Title: Assistance from U.S. Department of Energy
Accounting Policies: The accompanying schedule of expenditures of federal and city awards (the "Schedule") presents the grant activities of the federal and city award programs of Reinvestment Fund, Inc. and Affiliates (Reinvestment Fund or the "Organization") for the year ended December 31, 2022. The information in the Schedule is presented in accordance with 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) and the City of Philadelphia Subrecipient Audit Guide. Because the Schedule presents only a selected portion of the operations of Reinvestment Fund, Inc. and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Reinvestment Fund, Inc. and Affiliates. All federal financial assistance received directly from federal or city agencies as well as such financial assistance passed through state or city agencies, other governmental agencies or not-for-profit organizations are included on the Schedule. Pennsylvania state financial assistance awards not received from the City of Philadelphia are not required to be part of an audit in accordance with the City of Philadelphia Subrecipient Audit Guide and therefore, such Pennsylvania state financial assistance is not reflected in the Schedule. Expenditures reported on the Schedule are reported on the 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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Reinvestment Fund does not use the 10% de miniumus rate permitted under the Uniform Guidance.
(a)Pennsylvania Green Energy Loan Fund (GELF): In May 2010, the Organization entered into a grant agreement with the Commonwealth of Pennsylvania, Department of Environmental Protection ("DEP"). The grant in the amount of $12,000,000 was made available for the project as authorized by the American Recovery and Reinvestment Act of 2009 ("ARRA") under the Department of Energy (DOE)'s State Energy Program ("SEP"). In accordance with the grant agreement, the Organization created GELF, a statewide revolving loan program that builds upon the Organization's existing platform for financing renewable energy and energy efficiency projects. Per the grant agreement, the Organization's operating expenses cannot be recovered from the DEP's grant, but the Organization may use Program Income, the interest on idle funds, earned interest from lending, fees and other charges to cover its operating costs.In April 2015 and May 2018, additional grant funding in the amount of $1,386,039 and $279,877, respectively was awarded. As of December 31, 2022, the program earned a total of $4,915,332 of program income of which $418,610 was earned during 2022. The Organization utilized program income for operating expenses in the amount of $55,416 for the year ended December 31, 2022, which is included in the federal expenditures presented in the Schedule under Federal Assistance Listing Number 81.041.(b)Greenworks Energy Loan Fund: In April 2010, the Organization entered into a grant agreement with PIDC-Local Development Corporation (PIDC-LDC). Grant funds of $1,723,252 were awarded through the City of Philadelphia (the "City") under DOE's Formula Energy Efficiency and Conservation Block Grant Program (EECBG) pursuant to the ARRA. In August 2011, due to a revised interpretation by DOE of the statutory language in the EECBG legislation, PIDC-LDC amended the grant agreement to re-program the revolving loan funds in the PIDC Greenworks program to a loan loss reserve (charge-off) and an interest rate buydown program. Under the terms of the grant, program income must be used for direct lending, loan loss reserve, interest rate buydown or administrative expenses for eligible energy efficiency related projects under the terms and conditions of the Formula EECBG program. The Organization had earned but not expended program income earnings in the amount of $8,397 for the year ended December 31, 2022.The grant funds under the Greenworks program are considered federal awards expended once the loan loss reserve and/or the interest rate buydown are funded and committed to be used to support an individual loan or a portfolio of loans. No funds were funded or committed in 2022; as such, no amount is included in federal expenditures in the Schedule. (c)EnergyWorks Loan Fund: In April 2010, the Organization entered into a grant agreement with PIDC-LDC. Grant funds of $6,799,357 were awarded through the City under DOE's Competitive EECBG pursuant to the ARRA. In August 2011, due to a revised interpretation by DOE of the statutory language in the EECBG legislation, PIDC-LDC amended the grant agreement to re-program the revolving loan funds to a loan loss reserve (charge off) and an interest rate buydown program. In September 2015, PIDC-LDC amended the grant agreement to increase grant funds to $7,213,789. Under the terms of the grant, program income must be used for direct lending, loan loss reserve, interest rate buydown or administrative expenses for eligible energy efficiency related projects under the original terms and conditions of the Competitive EECBG program. The Organization had earned but not expended program income earnings in the amount of $30,080 for the year ended December 31, 2022.
Title: Assistance from U.S. Department of Energy (Continued)
Accounting Policies: The accompanying schedule of expenditures of federal and city awards (the "Schedule") presents the grant activities of the federal and city award programs of Reinvestment Fund, Inc. and Affiliates (Reinvestment Fund or the "Organization") for the year ended December 31, 2022. The information in the Schedule is presented in accordance with 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) and the City of Philadelphia Subrecipient Audit Guide. Because the Schedule presents only a selected portion of the operations of Reinvestment Fund, Inc. and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Reinvestment Fund, Inc. and Affiliates. All federal financial assistance received directly from federal or city agencies as well as such financial assistance passed through state or city agencies, other governmental agencies or not-for-profit organizations are included on the Schedule. Pennsylvania state financial assistance awards not received from the City of Philadelphia are not required to be part of an audit in accordance with the City of Philadelphia Subrecipient Audit Guide and therefore, such Pennsylvania state financial assistance is not reflected in the Schedule. Expenditures reported on the Schedule are reported on the 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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Reinvestment Fund does not use the 10% de miniumus rate permitted under the Uniform Guidance.
The grant funds under the EnergyWorks program are considered federal awards expended once the loan loss reserve and/or the interest rate buydown are funded and committed to be used to support an individual loan or a portfolio of loans. No funds were funded or committed in 2022; as such, no amount is included in federal expenditures in the Schedule.
Title: Assistance From U.S Department of Agriculture ("USDA")
Accounting Policies: The accompanying schedule of expenditures of federal and city awards (the "Schedule") presents the grant activities of the federal and city award programs of Reinvestment Fund, Inc. and Affiliates (Reinvestment Fund or the "Organization") for the year ended December 31, 2022. The information in the Schedule is presented in accordance with 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) and the City of Philadelphia Subrecipient Audit Guide. Because the Schedule presents only a selected portion of the operations of Reinvestment Fund, Inc. and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Reinvestment Fund, Inc. and Affiliates. All federal financial assistance received directly from federal or city agencies as well as such financial assistance passed through state or city agencies, other governmental agencies or not-for-profit organizations are included on the Schedule. Pennsylvania state financial assistance awards not received from the City of Philadelphia are not required to be part of an audit in accordance with the City of Philadelphia Subrecipient Audit Guide and therefore, such Pennsylvania state financial assistance is not reflected in the Schedule. Expenditures reported on the Schedule are reported on the 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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Reinvestment Fund does not use the 10% de miniumus rate permitted under the Uniform Guidance.
In October 2019, the Organization was awarded a grant of $2,000,000 from the USDA, Rural Business-Cooperative Service. The grant was amended in 2020 and again in 2021, to increase the total award amount to $8,377,652. The grant is to be used to implement the Healthy Food Financing Initiative to improve access to healthy foods in underserved areas, to create and preserve quality jobs, and to revitalize low income communities. During the year ended December 31, 2022, the Organization expended $2,009,421 under this agreement, which is included in the federal expenditures presented in the Schedule under Federal Assistance Listing Number 10.872.In October 2021, the Organization was awarded a grant of $3,621,131 from the USDA, Rural Business-Cooperative Service. The grant is to be used to implement the Healthy Food Financing Initiative to improve access to healthy foods in underserved areas, to create and preserve quality jobs, and to revitalize low income communities. During the year ended December 31, 2022, the Organization expended $60,442 under this agreement, which is included in the federal expenditures presented in the Schedule under Federal Assistance Listing Number 10.872.In February 2022, the Organization was awarded a grant of $20,000,000 from the USDA, Rural Business-Cooperative Service. The grant is to be used to implement the Healthy Food Financing Initiative to improve access to healthy foods in underserved areas, to create and preserve quality jobs, and to revitalize low income communities. During the year ended December 31, 2022, the Organization expended $2,833,549 under this agreement, which is included in the federal expenditures presented in the Schedule under Federal Assistance Listing Number 10.872.