Notes to SEFA
Title: BASIS OF ACCOUNTING
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) presents the activity of all federal financial assistance programs of Mary Queen and Mother Association (the Association). 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Association has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, Section 414.
The accompanying Schedule is presented using the accrual basis of accounting.
Title: MORTGAGE NOTE PAYABLE
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) presents the activity of all federal financial assistance programs of Mary Queen and Mother Association (the Association). 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Association has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, Section 414.
The Association has a 3.65% mortgage note payable insured by the U.S. Department of Housing and Urban Development (HUD) in the amount of $9,123,714 at June 30, 2023. The note is payable in monthly installments of $39,234 (including principal and interest) through December 1, 2051. The note is secured by substantially all real property of the Association. This loan is included in the schedule of expenditures of federal awards.
The basis used to determine loans expended included in the Schedule is 1) the loan amount of new loans made or received during the fiscal year plus 2) the balance of the loans from previous years for which the federal government imposes continuing compliance requirements, which totaled $9,326,732, plus 3) any interest subsidy, cash or administrative cost allowance received, which was $0.