Notes to SEFA
Title: NOTE 1 - BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedules 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. The District has elected not to use the 10percent de minimis
indirect
cost
rate as allowed under the Uniform
guidance.
De Minimis Rate Used: N
Rate Explanation: Organization decided to use their approved cost allocation plan
The accompanying schedules of expenditures of state and federal awards (the “Schedules”) include the state and
federal grant activity of East Tennessee Development District (the “District”) under programs of the state and
federal government for the year ended June 30, 2023. The information in these Schedules 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”), Audits of States,
Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in these Schedules may
differ from amounts presented in, or used in the preparation of, the basic financial statements. Catalog of
Federal Domestic Assistance (“CFDA”) numbers are presented for those programs for which such numbers were
available. All programs are presented by the state and federal department. Because the Schedules present only a
selected portion of the operations of the District, they are not intended to and do not present the financial
position, changes in net position, or cash flows of the District.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedules 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. The District has elected not to use the 10percent de minimis
indirect
cost
rate as allowed under the Uniform
guidance.
De Minimis Rate Used: N
Rate Explanation: Organization decided to use their approved cost allocation plan
Expenditures reported on the Schedules 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. The District has elected not to use the 10percent de minimis
indirect
cost
rate as allowed under the Uniform
guidance.
Title: NOTE 3 - LOANS
Accounting Policies: Expenditures reported on the Schedules 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. The District has elected not to use the 10percent de minimis
indirect
cost
rate as allowed under the Uniform
guidance.
De Minimis Rate Used: N
Rate Explanation: Organization decided to use their approved cost allocation plan
Loans made by the District to eligible participants under Revolving Loan Fund Program during the year ended
June 30, 2023 are summarized as follows:
Revolving Loan Fund Program
Loans Disbursement
$
743,948
Expenditure calculation for the Revolving Loan Fund program was as follows:
Cash
$
1,189,792
Outstanding loan balances
134,463
Administrative costs
736
1,324,991
Federal share
75%
Federal awards expended
$
993,743
Expenditure calculation for the Revolving Loan Fund - COVID-19 program was as follows:
Cash
$
180,793
Outstanding loan balances
597,516
Administrative costs
784,369
6,060
Federal share
100%
Federal awards expended
$
784,369