Audit 50910

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE 1. SIGNIFICANT ACCOUNTING POLICIESBasis of PresentationThe Schedule of Expenditures of Federal Awards is prepared using the modified accrual basis ofaccounting and is presented in accordance with the requirements of the Uniform Guidance.Measurement FocusThe determination of when an award is expended is based on when the activity related to the awardoccurred.Program Type DeterminationType A programs are defined as federal programs with federal expenditures exceeding the larger of$750,000 or 3% of total federal expenditures. The threshold of $1,337,449, was used in distinguishingbetween Type A and Type B programs, which is 3% of total federal expenditures.Method of Major Program SelectionThe risk-based approach was used in the selection of federal programs to be tested as majorprograms. The City of Savannah, Georgia (the City) qualified as a low-risk auditee for the fiscal yearended December 31, 2022.Program IncomeExpenditures of program income are recognized on the schedule of expenditures of federal awardswhen the qualifying expenditure has been incurred.Indirect Cost RateDuring 2022, the City did not use the de-minimis indirect cost rate. Indirect costs are charged basedon an indirect cost plan.NOTE 2. REVOLVING LOAN FUNDAs of December 31, 2022, the amount reported for the Economic Development Administration (EDA)revolving loan fund is calculated as follows:Cash on hand $ 1,039,294Notes receivable 428,4371,467,731EDA portion of the total 75%Total federal expenditures for the EDA program $ 1,100,798 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. ECONOMIC ADJUSTMENT ASSISTANCE (11.307) - Balances outstanding at the end of the audit period were 428437.