Notes to SEFA
Title: Value of outstanding loans
Accounting Policies: The SEFA is presented using the basis of accounting prescribed by the respective granting agency. Differences between the granting-agency basis of accounting and the accrual basis of accounting used by the Organization in preparing its financial statements primarily consist of amounts disbursed in exchange for notes receivable being treated as expenditures under the granting-agency basis of accounting. Total expenditure amounts reported in the SEFA agree with the total expenditure amounts reported in the related federal financial reports in all material respects, except for the effect of timing differences and the differences described above.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
ECONOMIC ADJUSTMENT ASSISTANCE (11.307) Balances outstanding at the end of the audit period were $427,383 less allowance for loan losses of $125,500. As of July 31, 2021, the Economic Development Administration released its federal interest in the Revolving Loan Fund awards funds. As such, these funds must be included in the Schedule of Expenditures of Federal Awards in the fiscal year of release and calculated as of July 31, 2021, the date of release. The funds are not to be included in the Schedule of Expenditures of Federal Awards in the fiscal years following release.
Title: RLF Expenditures
Accounting Policies: The SEFA is presented using the basis of accounting prescribed by the respective granting agency. Differences between the granting-agency basis of accounting and the accrual basis of accounting used by the Organization in preparing its financial statements primarily consist of amounts disbursed in exchange for notes receivable being treated as expenditures under the granting-agency basis of accounting. Total expenditure amounts reported in the SEFA agree with the total expenditure amounts reported in the related federal financial reports in all material respects, except for the effect of timing differences and the differences described above.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Total Revolving Fund (RLF) program expenditures shown on the schedule of expenditures of federal awards include both federal and matching funds and are determined as follows: Balance of RLF loans outstanding as of April 30, 2022 $427,383; Cash and investment balance in the RLF as of April 30, 2022 $1,882,230; Allowable administrative expenses paid out of RLF $667,639; Total all sources $2,977,252 Federal share of RLF 46.88%; Total Revolving Loan Fund expenditures $1,395,736