Notes to SEFA
Title: Insurance Coverage
Accounting Policies: Note A - Basis of Presentation
The accompanying schedule of expenditures of federal awards includes both the rent assistance payments for the year ended June 30, 2023 and the outstanding capital advance under the program at June 30, 2023, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Because the schedule presents only a selected portion of the operations of NLH 3, it is not intended to and does not present the financial position, changes in net assets, or cash flows of NLH 3.
Note B - Summary of Significant Accounting Principles
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
De Minimis Rate Used: N
Rate Explanation: NLH 3 did not elect to use the 10% de minimis indirect cost rate.
Property liability and rent revenue loss insurance policies in effect during the year satisfy the minimum coverage requirements per the Capital Advance.