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, as applicable, either the cost principles contained in OMB
Circular A-122, "Cost Principles for Non-Profit Organizations or 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: Y
Rate Explanation: Townsend Elderly Residences, Inc. has elected 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 Townsend Elderly Residences, Inc. (the "Corporation") under programs of
the federal government for the year ended October 31, 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 for Federal
Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the
operations of Townsend Elderly Residences, Inc., it is not intended to and does not present the
financial position, changes in net assets, or cash flows of Townsend Elderly Residences, Inc. For
the year ended October 31, 2023, no awards were passed through to subrecipients.
Title: U.S. Department of Housing and Urban Development loan program
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable, either the cost principles contained in OMB
Circular A-122, "Cost Principles for Non-Profit Organizations or 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: Y
Rate Explanation: Townsend Elderly Residences, Inc. has elected to use the 10-percent de minimis indirect cost rate
allowed under the Uniform Guidance.
The federal loan program listed below is administrated directly by Midland Loan Services, and
balances and transactions relating to the program are included in the Corporation's basic financial
statements. The loan outstanding at the beginning of the year is included in the federal
expenditures presented in the Schedule. The Corporation received no additional loans during the
year. The balance of the loan outstanding as of October 31, 2023 consists of:
AL Outstanding
number Program name October 31, 2023
14.155 Section 223 - HUD Insured Mortgage $ 2,644,362