Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the County of Merced, California (County). The County reporting entity is defined in Note 1 within the Merced County Annual Comprehensive Financial Report (ACFR). All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other government agencies, is included in the SEFA. The accompanying SEFA is presented using the cash basis of accounting, with the exception of the Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic financial statements were presented using the accrual basis of accounting for the government-wide and proprietary fund statements and the modified accrual basis of accounting for the governmental fund statements.
De Minimis Rate Used: Both
Rate Explanation: The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance for over 99% of its federal grants. The County elected to use the 10 percent de minimus indirect cost rate for the following program: Assistance Listing Number 16.575.
ECONOMIC ADJUSTMENT ASSISTANCE (11.307) - Balances outstanding at the end of the audit period were 68212. COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII (14.228) - Balances outstanding at the end of the audit period were 2897722. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 3874947.
Title: Loans Outstanding
Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the County of Merced, California (County). The County reporting entity is defined in Note 1 within the Merced County Annual Comprehensive Financial Report (ACFR). All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other government agencies, is included in the SEFA. The accompanying SEFA is presented using the cash basis of accounting, with the exception of the Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic financial statements were presented using the accrual basis of accounting for the government-wide and proprietary fund statements and the modified accrual basis of accounting for the governmental fund statements.
De Minimis Rate Used: Both
Rate Explanation: The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance for over 99% of its federal grants. The County elected to use the 10 percent de minimus indirect cost rate for the following program: Assistance Listing Number 16.575.
The County participates in certain federal award programs that sponsor revolving loan programs, which are administered by the County. These programs maintain servicing and trust arrangements with the County to collect loan repayments. The funds are returned to the programs upon repayment of the principal and interest. The federal government has imposed no continuing compliance requirements with respect to the loans rendered under the programs other than to repay the loans, except for the Economic Development Administration Revolving Loan Funds, which do impose continuing compliance requirements in addition to repayment of the loans.