Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: 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. Any negative amounts shown on the schedule represent adjustments or credits made in the normal course of operations to amounts reported as expenditures in prior years. Passthrough entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 6726727. As of June 30, 2022, outstanding federallyfunded program loans with continuing compliancerequirements are as follows: CFDA No. 14.157, Supportive Housing for the Elderly (Section 202), with no outstanding loans, and with continuing compliance requirements of $6726727. These funds originated as a Residual Receipts note from the Flexible Subsidy ProgramHUD Earthquake Loan Program (HELP) in August 1995. The proceeds were used to pay for earthquakerelated costs as approved by HUD. The loan was replaced by a "Conditional Note" in September 1995. Westminster Towers, Incorporated will not have to repay the Conditional Note as long as they remain in compliance with certain covenants, including an agreement to operate the Project as rental housing for lowincome elderly persons under HUD programs through February 1, 2031.
Title: Basis of Presentation
Accounting Policies: 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. Any negative amounts shown on the schedule represent adjustments or credits made in the normal course of operations to amounts reported as expenditures in prior years. Passthrough entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Westminster Towers, Inc. Westminster Towers HUD Project No.122SH067 (Project) under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the audit 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 the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project.