Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 US Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the presentation of, the basic financial statements. INDIRECT COST RATE: Gorman Towers, Inc. has not elected to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance, but rather the rates established directly with the respective federal agency. OUTSTANDING LOAN BALANCES: Gorman Towers, Inc. has an outstanding FHA Section 207/223(f) loan payable granted under Section 202 of the Housing Act of 1959. Current year expenditures were $3,806,499. This loan has ongoing compliance requirements that exist over the administration of the guaranteed debt. The outstanding principal balance at August 31, 2023, was $3,806,499.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Supportive Housing for the Elderly (14.157) - Balances outstanding at the end of the audit period were $3,806,499