Notes to SEFA
Title: CAPITAL ADVANCE
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of Champion Place, Inc., HUD Project No. 014-EE274 (the Corporation)(a New York not-for-profit corporation) under programs of the federal government for the yearended September 30, 2022, and has been prepared in accordance with accounting principlesgenerally accepted in the United States of America. The information in this Schedule ispresented in accordance with the requirements of Title 2 U.S. Code of Federal RegulationsPart 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Because the Schedule presents only a selected portionof the operations of the Corporation, it is not intended to and does not present the financialposition, changes in net assets or cash flows of the Corporation.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Corporation has received a Section 202 capital advance from the U.S. Department ofHousing and Urban Developments Supportive Housing for the Elderly program (AssistanceListing 14.157). Under the terms of the capital advance agreement, the Corporation must continue to operate the Project for the specified purpose for a period of forty years. Failure to operate the Project in accordance with the capital advance agreement would result in the Corporation being required to repay HUD the entire capital advance, plus interest, since the date of the first advance.