Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Lenoir City Housing Authority, and 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements.
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. Lenoir City Housing Authority has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
RURAL RENTAL HOUSING LOANS (10.415) - The Authority has received U.S. Department of Agriculture mortgage payables under Section 515 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the outstanding mortgages payable column presented in the schedule. The Authority received no additional funds during the year. The balance of loans outstanding at September 30, 2022, totaled $943,209.