Notes to SEFA
Title: NOTE 1 BASIS OF PRESENTATION
Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting, adjusted for the requirements described in Note 1. 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. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying consolidated Schedule of Expenditures of Federal Award (the Schedule) includes the federal grant activity of Mission Economic Development Agency, a California nonprofit corporation, and Subsidiaries (collectively, the Organization), and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the 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). Therefore, some amounts presented in the Schedule, may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Subsidiaries of Mission Economic Development Agency for the purpose of the consolidated schedule of expenditures of federal awards are single-member LLCs whose sole member is Mission Economic Development Agency that are not subject to separate audits in accordance with the requirements of the Uniform Guidance. The federal expenditures awarded to the following subsidiary is included in the consolidated schedule of expenditures of federal awards: Mission Community Loan Fund, LLC Community Development Financial Institutions $740,482