Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: Note 1 - Basis of presentationThe accompanying schedule of expenditures of federal awards (the "Schedule") includes thefederal award activity of Hanover Legion Elderly Housing Corporation under programs of the federalgovernment for the year ended December 31, 2022. The information in this Schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations of HanoverLegion Elderly Housing Corporation, it is not intended to and does not present the financial position,changes in net assets or cash flows of Hanover Legion Elderly Housing Corporation.Note 2 - Summary of significant accounting policiesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards, wherein certain types of expenditures are not allowable orare limited as to reimbursement. Hanover Legion Elderly Housing Corporation has elected not touse the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
HOUSING FINANCE AGENCIES (HFA) RISK SHARING (14.188) - Balances outstanding at the end of the audit period were 2878461.
Title: Note 3 - Federal loan program
Accounting Policies: Note 1 - Basis of presentationThe accompanying schedule of expenditures of federal awards (the "Schedule") includes thefederal award activity of Hanover Legion Elderly Housing Corporation under programs of the federalgovernment for the year ended December 31, 2022. The information in this Schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations of HanoverLegion Elderly Housing Corporation, it is not intended to and does not present the financial position,changes in net assets or cash flows of Hanover Legion Elderly Housing Corporation.Note 2 - Summary of significant accounting policiesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards, wherein certain types of expenditures are not allowable orare limited as to reimbursement. Hanover Legion Elderly Housing Corporation has elected not touse the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The federal loan program listed below is administered directly by Hanover Legion Elderly HousingCorporation, and balances and transactions relating to these programs are included in HanoverLegion Elderly Housing Corporation's basic financial statements. Loans outstanding at thebeginning of the year and loans made during the year are included in the federal expenditurespresented in the Schedule.