Title: SCOPE OF AUDIT PURSUANT TO THE UNIFORM GUIDANCE
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes all Federal grants and contracts to RCAC that had activity during the year ended September 30, 2022. This schedule has been prepared on the accrual basis of accounting. Grant and contract revenue is recorded for financial reporting purposes when RCAC has met the qualifications for the respective grants and contracts. Grants that have expired and procurement contracts that do not have an individual CFDA number, have been identified by contract number in the SEFA.
De Minimis Rate Used: N
Rate Explanation: RCAC has a Negotiated Indirect Cost Rate Agreement (NICRA) with the U.S. Government. Accordingly,it has elected not to use the de minimis indirect cost rate of 10%.
All federal grant operations of Rural Community Assistance Corporation (RCAC) are included in thescope of the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Compliance testing of all requirements under theUniform Guidance were performed for RCAC. The National Priority Area 1, National Priority Area 2,National Priority Area 3, National Priority Area 4, Onsite Technical Assistance to Improve Cyber IncidentPreparation, Response and recover at Water & Wastewater systems, Public Water System Supervision &Training, Water Quality Control Drinking Water TA in Colorado, Environmental Quality TA as directed byAZDEQ, CDPHE Public Water Systems Training Grants, New Mexico Environmental Department,Department of Conservation and Natural Resources a division of Environmental Protection, CapacityDevelopment Assistance, and Drinking Water Training and Outreach, represent major federal awardprograms and other grants with fiscal 2022 cash and noncash expenditures in excess of $750,000 toensure coverage of at least 25% of federally granted funds. Actual coverage is approximately 39% of totalcash and noncash federal award program expenditures.
Title: RELATIONSHIP TO CONSOLIDATED FINANCIAL STATEMENTS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes all Federal grants and contracts to RCAC that had activity during the year ended September 30, 2022. This schedule has been prepared on the accrual basis of accounting. Grant and contract revenue is recorded for financial reporting purposes when RCAC has met the qualifications for the respective grants and contracts. Grants that have expired and procurement contracts that do not have an individual CFDA number, have been identified by contract number in the SEFA.
De Minimis Rate Used: N
Rate Explanation: RCAC has a Negotiated Indirect Cost Rate Agreement (NICRA) with the U.S. Government. Accordingly,it has elected not to use the de minimis indirect cost rate of 10%.
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree, in all material respects, to amounts reported within the consolidated financial statements. Federal award revenues are reported principally in RCAC's consolidated financial statements as grant revenue.
Title: AMOUNTS PROVIDED TO SUB-RECIPIENTS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes all Federal grants and contracts to RCAC that had activity during the year ended September 30, 2022. This schedule has been prepared on the accrual basis of accounting. Grant and contract revenue is recorded for financial reporting purposes when RCAC has met the qualifications for the respective grants and contracts. Grants that have expired and procurement contracts that do not have an individual CFDA number, have been identified by contract number in the SEFA.
De Minimis Rate Used: N
Rate Explanation: RCAC has a Negotiated Indirect Cost Rate Agreement (NICRA) with the U.S. Government. Accordingly,it has elected not to use the de minimis indirect cost rate of 10%.
Amounts provided to sub-recipients under Federal and non-federal award programs during the year ended September 30, 2022 were as follows:HHS Community Services Block Grants $24,437. USDA Technitraib $11,272 Rural Community Development Initiative $18,359HUD National Disaster Resilience Competition $22,532*NeighborWorks Housing Stability Counseling Program $659,846HUD Housing Counseling, Rural Capacity Building $658,410Non-Federal Award Program Grants and Pass-through Awards $1,505,302Total Grants and Pass-through Awards $ 2,900,158*Assistance Listing Numbers: Housing Stability Counseling Program funds were made available throughthe American Rescue Plan Act of 2021 (Public Law 117.2) and are administered by NeighborWorksAmerica. NeighborWorks America is a public, Congressionally-chartered nonprofit organization thatreceives a direct federal appropriation. NeighborWorks America is not a federal agency and at presentdoes not have an Assistance Listing Number assigned by the Office of Management & Budget.Consistent with guidance provided to NeighborWorks America by the federal Audit Clearinghouse,Grantees and sub-recipients of the Housing Stability Counseling Program subject to the Single Audit Actare instructed to use the following AL Number for their housing Stability Counseling Program grant funds:99.U19- not reported on SEFA as we treat it as revenue with Donor restrictions.
Title: FEDERAL AWARDS EXPENDED WITH COMMON CFDA NUMBER
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes all Federal grants and contracts to RCAC that had activity during the year ended September 30, 2022. This schedule has been prepared on the accrual basis of accounting. Grant and contract revenue is recorded for financial reporting purposes when RCAC has met the qualifications for the respective grants and contracts. Grants that have expired and procurement contracts that do not have an individual CFDA number, have been identified by contract number in the SEFA.
De Minimis Rate Used: N
Rate Explanation: RCAC has a Negotiated Indirect Cost Rate Agreement (NICRA) with the U.S. Government. Accordingly,it has elected not to use the de minimis indirect cost rate of 10%.
When there is more than one program under a single CFDA number, the Schedule of Expenditures of Federal Awards totals all programs under the one CFDA number. Occasionally, however, this total could not be conveniently displayed because all programs under one CFDA number were not contiguous. When this occurred, this total is not shown in the Schedule, but instead, is provided below: AL Number Expenditures: 10.446 $ 238,677. 10.761 $1,916,419. 10.890 $90,430. 12-31ME-18-C-0005 $2,599,728. 14.169 $1,203,047. 14.252 $17,363. 14.265 $423,688. 66.424 $1,468,346. 66.468 $2,095,165. 93.569 $309,671.
Title: PASS-THROUGH ENTITIES' IDENTIFYING NUMBER
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes all Federal grants and contracts to RCAC that had activity during the year ended September 30, 2022. This schedule has been prepared on the accrual basis of accounting. Grant and contract revenue is recorded for financial reporting purposes when RCAC has met the qualifications for the respective grants and contracts. Grants that have expired and procurement contracts that do not have an individual CFDA number, have been identified by contract number in the SEFA.
De Minimis Rate Used: N
Rate Explanation: RCAC has a Negotiated Indirect Cost Rate Agreement (NICRA) with the U.S. Government. Accordingly,it has elected not to use the de minimis indirect cost rate of 10%.
When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, RCAC either determined that no identifying number is assigned for the program, or was simply unable to obtain an identifying number from the pass-through entity.
Title: GRANTS TO LENDING CAPITAL
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes all Federal grants and contracts to RCAC that had activity during the year ended September 30, 2022. This schedule has been prepared on the accrual basis of accounting. Grant and contract revenue is recorded for financial reporting purposes when RCAC has met the qualifications for the respective grants and contracts. Grants that have expired and procurement contracts that do not have an individual CFDA number, have been identified by contract number in the SEFA.
De Minimis Rate Used: N
Rate Explanation: RCAC has a Negotiated Indirect Cost Rate Agreement (NICRA) with the U.S. Government. Accordingly,it has elected not to use the de minimis indirect cost rate of 10%.
On April 5, 2019, RCAC received a $714,000 award from the U.S. Treasury, Community DevelopmentFinancial Institution (CDFI) for lending capital to be lent to qualified borrowers. $72,000 and $564,000were disbursed in FY22 and FY21 respectively. On June 28, 2022, RCAC received a $690,000 award from the U.S. Treasury, Community DevelopmentFinancial Institution (CDFI) for lending capital to be lent to qualified borrowers. As of September 30, 2022,$690,000 was disbursed.On August 26, 2021, RCAC received a $1,826,265 award from the U.S. Treasury, CommunityDevelopment Financial Institution (CDFI) for lending capital to be lent to qualified borrowers. As ofSeptember 30, 2022, $60,000 was disbursed.On June 27, 2019, RCAC received a $3,562,500 award from the U.S. Treasury, Capital Magnet Fund(CMF) for lending capital to be lent to qualified borrowers. None and $984,736 were disbursed in FY22and FY21 respectively.On May 7, 2021, RCAC received a $2,755,000 award from the U.S. Treasury, Capital Magnet Fund(CMF) for lending capital to be lent to qualified borrowers. As of September 2022, $865,000 wasdisbursed.On September 20, 2022, RCAC received a $4,275,000 award from the U.S. Treasury, Capital MagnetFund (CMF) for lending capital to be lent to qualified borrowers. As of September 2022, none of thesefunds have been disbursed.On March 30, 2018, RCAC received a $219,649 award from U.S. Department of Commerce EconomicDevelopment Administration (EDA) for lending capital for the Revolving Loan Fund to be lent to qualifiedborrowers. As of September 30, 2022, $219,649 was disbursed. On September 17, 2019, RCAC received a $202,500 award from USDA Rural Utilities Service (RUS) forlending capital for the Household Water Wells Program to be lent to qualified borrowers. $33,533 wasobligated to DWS #1. None and $68,567 were disbursed in FY22 and FY21 respectively.NOTE 8: GRANTS TO LENDING CAPITAL (Continued)On September 4, 2021, RCAC received a $900,000 award from USDA Rural Utilities Service (RUS) forlending capital for the Decentralized Water Systems Program to be lent to qualified borrowers. As ofSeptember 30, 2022, $6,337 was disbursed.On September 1, 2020, RCAC received a $333,000 award from USDA Rural Utilities Service (RUS) forlending capital to be lent to qualified borrowers. As of September 30, 2022, $160,008 and $56,219 weredisbursed in FY22 and FY21 respectively.On September 17, 2021, RCAC received a $333,000 award from USDA Rural Utilities Service (RUS) forlending capital to be lent to qualified borrowers. As of September 2022, none of these funds have beendisbursed.On October 28, 2019, RCAC received a $1,000,000 award from USDA Intermediary Relending Program(IRP), 30 years, 1% interest rate, with a maturity date of September 2049 for lending capital to be lent toqualified borrowers. As of September 2022, $367,103 was disbursed.On November 28, 2020, RCAC received a $1,000,000 award from USDA Intermediary RelendingProgram (IRP), 30 years 1% interest rate, with a maturity date of September 2050 for lending capital tobe lent to qualified borrowers. As of September 30, 2022, $451,060 was disbursed.