Notes to SEFA
Title: Basis of Presentation
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: The Association has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of ARC of Hawaii Housing Project Number 12, Incorporated (the
Association) under programs of the federal government for the year ended June 30, 2023. 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 of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Association, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Association.
Title: Capital Advances
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: The Association has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Association received a direct federal loan from the Department of Housing and Urban Development. The mortgage note payable balance and transactions relating to this program is included in the Association’s financial statements. The outstanding balance on the mortgage note payable amounted to $558,114 at the beginning of the year, and tenant assistance payments amounting to $204,419 for the year ended June 30, 2023, are included in the federal expenditures presented in the Schedule. The outstanding balance on the mortgage note payable at June 30, 2023, amounted to $508,202.
Title: Community Development Block Grant Loan
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: The Association has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Association received a Community Development Block Grants/Entitlement Grants Program (Federal Assistance Listing Number 14.218) loan passed through the City and County of Honolulu. The surplus cash note payable and transactions relating to this program are included in the Association’s financial statements. The outstanding balance on the surplus cash note payable amounted to $38,695 at the beginning of the year, which is included in the federal expenditures presented in the Schedule. The outstanding balance on the surplus cash note payable at June 30, 2023, amounted to $29,265.