Notes to SEFA
Title: Loan Program
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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
in 2020, Cornerstone applied for and received an Economic Injury Disaster Loan (EIDL) from the Small Business Administration in the amount of $150,000. In January 2022, Cornerstone applied for and received additional funds on this loan in the amount of $1,850,000. This loan matures in July 2050 and has an interest rate of 2.75%. The balance of this loan at December 2022 is $1,995,879, plus accrued interest of $21,446.The proceeds of loans that were received and expended in prior years are not considered federal awards expended when the laws, regulations and provisions of contracts or grant agreements pertaining to such loans impose no continuing compliance requirements other than to repay the loans and have been excluded from the Schedule and the notes to the Schedule.