Notes to SEFA
Title: Note D - Loans Outstanding
Accounting Policies: Note A Basis of Presentation: The accompanying schedule of expenditures of federal awards (theSchedule) includes the federal award activity of the organization under programs of the federal governmentfor the year ended December 31, 2022. The information in this Schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Becausethe Schedule presents only a selected portion of the operations of the organization, it is not intended to anddoes not present the financial position, changes in net assets, or cash flows of the organization.Note B Summary of Significant Accounting Policies: Expenditures reported on the Schedule arereported on the accrual basis of accounting. Such expenditures are recognized following the cost principlescontained in the Uniform Guidance and/or OMB Circular A-122, Cost Principles for Non-ProfitOrganizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
As discussed in the Mortgage Payable note above, the Section 202Supportive Housing for the Elderly - Capital Advance represents a permanent building loan provided byHUD under the capital advance program. The mortgage note bears no interest and shall be repayable onlyif the project does not maintain project use for HUD specified resident categories during the 40 year life ofthe capital advance related mortgage. The mortgage is secured by the apartment complex.