Notes to SEFA
Title: Basis of Presentation
Accounting Policies: (1) 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.(2) Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: (3) CommonBond Communities has elected not to use the 10-percent de minimis indirect cost rateallowed under the Uniform Guidance. CommonBond Communities has a federally negotiated indirectcost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of CommonBond Communities and affiliates under programs of the federal government for the year ended December 31, 2022. CommonBond Communities consolidated financial statements include the operations of various for-profit entities and nonprofit entities (referred to as Housing Communities). Certain of these entities receive federal awards which are excluded from the Schedule for the year ended December 31, 2022. The for-profit Housing Communities were excluded from theSchedule because for-profit entities are not required to follow Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Such entities followed the requirements of the Consolidated Audit Guide for Audits of HUD Programs (the Guide) when required. The nonprofit Housing Communities were excluded from the Schedule because separate audits of these entities were conducted in accordance with the Uniform Guidance.The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of CommonBond Communities and affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of CommonBond Communities and affiliates.
Title: Community Development Financial Institutions Program
Accounting Policies: (1) 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.(2) Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: (3) CommonBond Communities has elected not to use the 10-percent de minimis indirect cost rateallowed under the Uniform Guidance. CommonBond Communities has a federally negotiated indirectcost rate.
Federal expenditures for the Community Development Financial Institutions program includes $266,703 of new loans made during the year from the original $4,000,000 pool of funds, plus the balance at the beginning of the year of revolving loan funds for which the grantor imposes continuing compliance requirements. In accordance with terms of the Capital Magnet Funds, loan repayments are added back to the pool of funds for which the grantor imposes continuing compliance requirements. Loan repayments will be used to make additional loans under the program. Repayments totaled $1,639,271 in 2022. Recycled funds totaling $1,625,817 were used for allowable costs under the grantagreement. The December 31, 2022 outstanding loan balance is $2,927,486.