Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal financial assistance activity of Epiphany Housing, Inc. (the Project) and is presented on the accrual basis of accounting. For purposes of this schedule, federal financial awards include an insured mortgage payable entered into by the Project. 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). 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. Federal expenditures of $2,802,116 are comprised of $616,001 in current year expenditures and the outstanding balance of the insured mortgage payable by the U.S. Department of Housing and Urban Development and related grant funds totaling $2,186,115 as of December 31, 2022, which is required to be included each year the federal government imposes compliance requirements on the program funded by the original loan.
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 $2,802,116.