Title: Loan/loan guarantee outstanding balances
Accounting Policies: BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Opportunity Finance Network and Subsidiaries (OFN) under programs of the federal government for the year ended December 31, 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 (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of OFN, it is not intended to and does not present the financial position, changes in net assets, or cash flows of OFN.
De Minimis Rate Used: N
Rate Explanation: OFN has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS BOND GUARANTEE PROGRAM (21.014) - Balances outstanding at the end of the audit period were $441,052,405.
Title: NOTE 4: COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS BOND GUARANTEE PROGRAM
Accounting Policies: BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Opportunity Finance Network and Subsidiaries (OFN) under programs of the federal government for the year ended December 31, 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 (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of OFN, it is not intended to and does not present the financial position, changes in net assets, or cash flows of OFN.
De Minimis Rate Used: N
Rate Explanation: OFN has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The Community Development Financial Institutions (CDFI) Bond Guarantee Program (Bond Program) was enacted through the Small Business Jobs Act of 2010 (Public Law 111-240) on September 27, 2010. The legislation directs the Treasury Department to guarantee the full amount of bonds issued to support CDFIs that make investments for eligible community or economic development purposes.2013 Bond - In 2013, the CDFI Fund approved OFN to serve as a qualified issuer and issue a $100 million, 29.5-year bond on behalf of Clearinghouse CDFI, an eligible CDFIunder the Bond Program. As a qualified issuer, OFN's primary duties are as a program administrator, monitoring Clearinghouse CDFIs compliance with all Bond Program requirements. OFN and Clearinghouse CDFI have executed bond loan documents and Clearinghouse CDFI drew down the bond totaling $100 million during 2014 through 2016.During the year ended December 31, 2022, Clearinghouse CDFI made repayments totaling $16,107,371. As of December 31, 2022, the outstanding amount of the 2013 bond payable is $66,702,101. As of December 31, 2022, the amount of $82,809,472 is included in federal expenditures in the Schedule. The amount represents the outstanding bondspayable balance at December 31, 2021. There were no draws in 2022. 2015 Bonds - In 2015, the CDFI Fund approved OFN to issue eight additional 29.5-year bonds on behalf of eligible CDFls under the Bond Program totaling $227 million. OFN issued a second $100 million bond on behalf of Clearinghouse CDFI and $127 million on behalf of the following seven CDFls: Community Ventures Corporation, Community Loan Fund of New Jersey, Inc., Citizen Potawatomi Community Development Corporation, Bridgeway Capital, Inc., Federation of Appalachian Housing Enterprises, Inc., Kentucky Highlands Investment Corporation and The Chicago Community Loan Fund. As of December 31, 2022, the amount of $197,584,307 is included in federal expenditures in the Schedule. The amount represents the outstanding bonds payable balance at December 31, 2021. There were no draws in 2022. 2017 Bond - In 2017, the CDFI Fund approved OFN to serve as a qualified issuer and issue a $145 million 29.5-year bond on behalf of eight eligible CDFls under the BondProgram: Building Hope. A Charter School Facilities Fund, Coastal Enterprises, Inc., Community First Fund, Florida Community Loan Fund, Inc., Greater Minnesota Housing Fund, Homewise, Inc., Housing Trust Silicon Valley and Impact Seven. During 2019, Coastal Enterprises, Inc. withdrew from the Bond Program, leaving a total bond commitment of $125 million. As of December 31, 2022, the amount of $81,981,176 is included in federal expenditures in the Schedule. The amount represents the outstanding bonds payable balance at December 31, 2021, of $74,131,176 plus the 2022 draw down of $7,850,000. 2019 Bond - In 2019, the CDFI Fund approved OFN to serve as a qualified issuer and issue a $100 million, 29.5-year bond on behalf of three eligible CDFIs under the BondProgram: Community Loan Fund of New Jersey, Federation of Appalachian Housing Enterprises Inc. and Greater Minnesota Housing Fund.As of December 31, 2022, the amount of $78,677,450 is included in federal expenditures in the Schedule. The amount represents the outstanding bonds payable balance at December 31, 2021, of $55,687,162 plus the 2022 draw down of $22,990,288. 2022 Bond - In 2022, the CDFI Fund approved OFN to serve as a qualified issuer and issue a $130 million 29.5 year bond on behalf of three eligible CDFIs under the BondProgram: Charter School Development Corporation, Greater Minnesota Housing Fund and Community Ventures Corporation. There were no draws during 2022 and no outstanding bonds payable as of December 31, 2022.