Notes to SEFA
Title: Basis of Presentation
Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting, except forthe loan balances as discussed below. Such expenditures are recognized following the costprinciples contained in the Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement.(2) 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-percent de minimis indirect cost rate allowed underthe Uniform Guidance.
The accompanying consolidated schedule of expenditures of federal awards (the Schedule) includes thefederal grant activity of Neighborhood Development Center, Inc. and its 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. Codeof Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (the Uniform Guidance). Because the Schedule presents only aselected portion of the operations of the Organization, it is not intended to and does not present thefinancial position, changes in net assets, or cash flows of the Organization.
Title: Loan/Loan Guarantee Outstanding Balances
Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting, except forthe loan balances as discussed below. Such expenditures are recognized following the costprinciples contained in the Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement.(2) 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-percent de minimis indirect cost rate allowed underthe Uniform Guidance.
Federal expenditures for the Microloan program includes the December 31, 2021 balances of threeloans outstanding from previous years including loan draws in 2022 for which the grantor imposescontinuing compliance requirements. The balances of the loans outstanding as of December 31, 2022are $49,253 for loan number 6093525000, $522,959 for loan number 8588505006 and $298,148 for loannumber 3454757201.