Notes to SEFA
Title: NOTE C: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM
Accounting Policies: NOTE A: BASIS OF PRESENTATION:
The accompanying schedule of expenditures of federal awards includes the federal award activity of Rural Housing For The Elderly II, Inc., HUD Project No. 024-EE032 and 024-EE052, and is presented on the accrual basis of accounting. The information in this 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 Rural Housing For The Elderly II, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Rural Housing For The Elderly II, Inc.
NOTE B: SUMMARY OF SIGNIFICANT 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: Rural Housing For The Elderly II, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
NOTE C: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM:
Rural Housing For The Elderly II, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Rural Housing For The Elderly II, Inc. received no additional loans during the year. The balance of the loan outstanding at June 30, 2023 consists of:
Section 202 Capital Advance $5,505,000