Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Revenues were adjusted to balance the expenditures incurred for each project.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 937051.
Title: COMPLIANCE TEST
Accounting Policies: The Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Revenues were adjusted to balance the expenditures incurred for each project.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
An extensive compliance test, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), was performed on the Mortgage Insurance for the Purchase or Refinancing of Existing Multi-Family Housing Projects program, which represents 72% of the total expenditures reflected on the Schedule of Federal Financial Assistance. The 20% of coverage test for a low risk auditee was satisfied as follows: Mortgage Insurance for the Purchase or Refinancing of Existing Multi-Family Housing Projects 14.155 $966,876, Section 8 Housing Assistance Payments 14.195 $196,347, Section 8 Housing Assistance Payments - Special Claims 14.195 $2,300, HOME Investment Partnership Program 14.239 $170,001 TOTALS $1,335,524 TIMES 20% EQUALS EQUALS $ 267,105. The Mortgage Insurance for the Purchase or Refinancing of Existing Multi-Family Housing Projects program exceeds $267,105, and, therefore, represents the only program to which the specific compliance requirements must be applied.