Notes to SEFA
Accounting Policies: Note 1 - Basis of PresentationThe accompanying consolidated schedule of expenditures of federal awards (the Schedule) includes the federalaward activity of Housing Hope and Subsidiaries (collectively, the Agency) under programs of the federalgovernment for the year ended June 30, 2022. The information in the Schedule is presented in accordance withthe audit 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). Because theSchedule presents only a selected portion of the operations of the Agency, it is not intended to and does notpresent the financial position, changes in net assets, or cash flow of the Agency.Note 2 - Summary of Significant Accounting PoliciesExpenditures 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. Pass-through entity identifying numbers are presentedwhere available. The Agency has not elected to use the 10-percent de minimis indirect cost rate as allowed underthe Uniform Guidance.Note 3 - Loans OutstandingThe Schedule includes loans expended in previous years that have continuing compliance requirements. Loanamounts reported in the Schedule represents gross proceeds received that are still outstanding as of July 1, 2021or were new in fiscal 2022. For the year ended June 30, 2022, the outstanding loan balance at June 30, 2022 wasthe same as the balance at July 1, 2021 plus new loans, with no exceptions. The total outstanding loan balancefor the year ended June 30, 2022 was $12,674,901.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.