Notes to SEFA
Title: Note 1 - Basic of Presentation
Accounting Policies: 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.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal awards
activity of Upper Manhattan Empowerment Zone Development Corporation (“UMEZ”) under programs of the
federal government for the year ended June 30, 2023. The information in the 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 (“Uniform Guidance”). Because the
Schedule presents only a selected portion of the operations of UMEZ, it is not intended to and does not present
the financial position, changes in net assets or cash flows of UMEZ.
Title: Note 2 - Summary of Significant Accounting Policies
Accounting Policies: 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.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
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.
Title: Note 3 – Indirect Cost Rates
Accounting Policies: 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.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
Title: Note 4 - Federally Funded Loan Programs
Accounting Policies: 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.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
The balances of loans as of June 30, 2023, for which the federal government imposes continuing compliance
requirements, are as follows. The opening balance plus current year disbursements are included in the
Schedule:
Program Title
Federal Assistance
Listing Number Amount
Empowerment Zone June 30, 2022 14.244 $ 3,191,932
Add: new loans issued 1,439,046
Less: amount collected (187,482)
Less: loans written off/forgiven (13,000)
Outstanding Empowerment Zone Program loan balance as
of June 30, 2023 14.244 $ 4,430,496
Outstanding Empowerment Zone Program loan balance as
of June 30, 2023 $ 13,291,295
Federal percentage 33.33%
Federal portion of outstanding Empowerment Zone
Program loan (rounded) $ 4,430,496