Notes to SEFA
Title: (4) LOANS
Accounting Policies: (1) BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of FIVCO Area Development District (the District) under programs of the federal government for the year ended June 30, 2022. 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). Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District. (2) SUMMARY OF SIGNIFICANT 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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: (3)INDIRECT COST RATEThe District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
As of October 25, 2021, the date of defederalization, the District had loans outstanding in the amount of $1,201,501 with an allowance for doubtful accounts of $9,338 under the Title IX-RLF loan program. The revolving loan federal expenditures is calculated by taking the loan balance of $1,201,501, plus the cash balance of $120,093, plus administrative expenditures of $261, plus $0 in loans written off, and then multiplying this total by the Federal share of 75% which equals $991,391. As of June 30, 2022, the District had loans outstanding in the amount of $1,044,070 with an allowance for doubtful accounts of $25,867 under the Title IX-RLF loan program funded by the CARES Act. The revolving loan federal expenditures is calculated by taking the current year loan balance of $1,044,070, plus the cash balance of $187,869, plus the current year administrative expenditures of $45,360, plus $0 in loans written off in the current year, and then multiplying this total by the Federal share of 100% which equals $1,277,299.