Title: NOTE 3 - MICROLOANS
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Center has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Small Business Administration (“SBA”) Microloan program is funded by loans from the SBA to the Center. From the SBA loans, the Center then makes small business microloans to eligible participants. Number of Loans Amount
Outstanding Microloans balance 119 $ 2,033,929
Microloans disbursed during the fiscal year 57 $ 1,344,967
May 31, 2023
Due to the continuing compliance requirements, for purposes of the Schedule, the amount reported includes the outstanding loan balance at the beginning of the fiscal year plus new loans disbursed during the fiscal year. The outstanding loans payable to SBA under this program as of May 31, 2023, totaled $1,741,384. See financial statements Note 5 for additional details.
Title: NOTE 4 - CA LOAN GUARANTEES
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Center has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Center has been designated by the SBA as a community advantage lender. The loans made by the Center under this program are guaranteed by SBA at 85% for loans less than $150,000 and 75% for loans greater than $150,000 and up to $350,000. The Center sells the guaranteed portion of the loan in a secondary market; however, still remains responsible for servicing the loans in their entirety.
Number of Loans Amount
Outstanding Community Advantage loan balance 58 $ 5,445,323
Community Advantage loans disbursed in the fiscal year 15 $ 2,453,000
Outstanding SBA Loan Guarantees 58 $ 4,686,319
May 31, 2023
Due to the continuing compliance requirements, for purposes of the Schedule, the amount reported includes the outstanding loan balance at the beginning of the fiscal year plus new loans disbursed during the fiscal year.
Title: NOTE 5 - PAYROLL PROTECTION PROGRAM
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Center has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Center has been designated by the SBA as a PPP lender. The loans made by the Center under this
program are guaranteed by SBA at 100%.
Number of
Loans Amount
Outstanding PPP balance 5 $ 23,575
Title: NOTE 6 - RELATIONSHIP TO FINANCIAL STATEMENTS
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Center has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The amount of total expenditures of federal awards reconciles to the revenue in the statement of activities as
follows:
Total expenditures of federal awards $ 13,508,412
Less: loan and loan guarantees (12,615,829)
Federal grant revenue included in gifts and grants on the statement of activities $ 892,583
Title: NOTE 7 - SUBRECIPIENTS, NONCASH ASSISTANCE AND FEDERAL INSURANCE
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Center has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Center did not provide any federal funds to subrecipients, nor did they receive any federal noncash
assistance or insurance.