Audit 52215

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule presents only the expenditures incurred by the Los Angeles County Development Authority (the LACDA), a discretely presented component unit of the County of Los Angeles, California, that are reimbursable under federal programs of federal assistance. For the purposes of this schedule, federal awards include both federal financial assistance received directly from a federal agency, as well as federal funds received indirectly by the LACDA from a non-federal agency or other organization. Only the portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local, or other non-federal funds are excluded from the accompanying schedule.The accompanying schedule is presented using the basis of accounting prescribed by the respective granting agencies. Differences between the granting-agencies basis of accounting and the modified-accrual basis of accounting used by the LACDA in preparing its governmental fund financial statements are as follows:?Amounts disbursed in exchange for notes receivable are treated as expenditures under the granting-agencies basis of accounting.?Notes receivable collections are treated as grant income under the granting-agencies basis of accounting.?Principal payments of long-term debt are treated as a reduction of the long-term debt and are not considered to be expenditures under the granting-agencies basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS (14.218) - Balances outstanding at the end of the audit period for the CDBG Revolving Loan Program were $2,121,638. Other CDBG Loans were $175,000. CDBG SECTION 108 LOAN GUARANTEES (14.248) were $2,000,000.