Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: 1 - BASIS OF PRESENTATIONThe accompanying consolidated Schedule of Expenditures of Federal Awards (the Schedule) includes the federalaward activity of Center of Hope Foundation, Inc. and Subsidiary (the Organization) under programs of thefederal government for the year ended June 30, 2022. The information in this Schedule is presented in accordancewith 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 presentsonly a selected portion of the operations of the Organization, it is not intended to and does not present theconsolidated financial position, changes in net assets, or cash flows of the Organization.For the purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered intodirectly and indirectly between the Organization and department of federal government and the Commonwealth ofMassachusetts.2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of accountingExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule representadjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - The full amount and unamortized outstanding balance of the loan guarantee program for capital advance loanreceived under the Supportive Housing for Persons with Disabilities (Section 811) Program was $1,176,404 as of June 30, 2022. The total federal expenditures shown in the above schedule represents the full amount of capital advance loan balance as of July 1, 2021. No new loans were made under this program during 2022 and there were no interest subsidies, cash or administrative cost allowances made under this program in 2022.