Title: Basis of Presentation
Accounting Policies: 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: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of National Council for Community Development, Inc. (d.b.a. The National Development Council) and its Controlled Affiliates (the "Organization"), 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 (CFR) 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 Organization, it is not intended to and does not present the consolidated and combined financial position, changes in net assets, or cash flows of the Organization. All financial assistance received directly from the federal agencies as well as financial assistance passed through other governmental agencies or nonprofit organizations is included on the Schedule.
Title: Revolving loan funds
Accounting Policies: 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: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The Organization received two Economic Development Assistance ("EDA") Revolving Loan Fund ("RLF") grants in 2020 - one for $770,000, with no match, of which $70,000 is authorized as an administrative component and the second for $3,850,000 with a $962,500 match, of which $437,500 is authorized as an administrative component (see components below). In 2021, the Organization received an additional RLF grant from the EDA in the amount of $2,750,000 with a $687,500 match, of which $312,500 is authorized as an administrative component. In 2022, the Organization received an additional RLF grant from the EDA in the amount of $1,592,000. The purpose of that grant is focused on growing and strengthening EDA funded RLF's but the Organization is not required to use the funding to make loans. The components of the RLF amounts as reported on the Schedule consist of the following at December 31, 2022: For contract award number 07-79-07573, the Organization has a balance of RLF principal outstanding on loans of $30,622; cash and investment balance in the RLF of $665,878; administrative expenses paid out of RLF income of $23,969; administrative expenses paid using awards designated for administrative expenses of $23,927; and unpaid principal of all loans written off of $3,500. The federal percentage on this award is 100% therefore the federal share is $747,896. For contract award number 07-79-07633, the Organization has a balance of RLF principal outstanding on loans of $186,625; cash and investment balance in the RLF of $4,161,712; administrative expenses paid out of RLF income of $149,791; administrative expenses paid using awards designated for administrative expenses of $164,791; and unpaid principal of all loans written off of $26,663. The federal percentage on this award is 80% therefore the federal share is $3,751,728. For contract award number 07-79-07658, the Organization has a balance of RLF principal outstanding on loans of $278,031; cash and investment balance in the RLF of $52,969; administrative expenses paid out of RLF income of $4,805; administrative expenses paid using awards designated for administrative expenses of $55,809; and unpaid principal of all loans written off of $0. The federal percentage on this award is 80% therefore the federal share is $313,291. For contract award number ED22HDQ3070190, the Organization has a balance of RLF principal outstanding on loans of $0; cash and investment balance in the RLF of $0; administrative expenses paid out of RLF income of $0; administrative expenses paid using awards designated for administrative expenses of $14,559; and unpaid principal of all loans written off of $0. The federal percentage on this award is 100% therefore the federal share is $14,559. From inception of the contract through December 31, 2022, the Organization received $770,000, $3,735,400, and $244,700, respectively from the EDA for contract award numbers 07-79-07573, 07-79-07633 and 07-79-07658, of which $34,274; $5,868; and $4,091, respectively, were unspent. As such these amounts were not included in the amounts reported on the Schedule.