Notes to SEFA
Title: Loan Balances
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Cherokee Housing Corporation, HUD Project No. 062-11191, 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 Cherokee Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cherokee Housing Corporation.
De Minimis Rate Used: N
Rate Explanation: 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. Cherokee Housing Corporation has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance.
Cherokee Housing Corporation has received a loan insured by the U.S. Department of Housing and Urban Development under Section 223(f) Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of the loan outstanding at September 30, 2023 is $1,781,576.