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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Total expenditures in the accompanying schedule of expenditures of federal awards for the HOME Investment Partnership (HOME) program (ALN 14.239) includes the total amount of new loans made during fiscal year 2022, as well as the unpaid principal balance from loans originated in previous years for which the Federal government imposed continuing compliance requirements through 42 USC 12701-12839 and 3535(d), with implementing regulations codified at 24 CFR part 92. As of June 30, 2022, the HOME program had loan balances subject to continuing compliance requirements of $4,804,459. Uniform Guidance (2 CFR 200.502) requires this amount be included in the basis for determining Federal awards expended on the current year schedule of expenditures of federal awards as the Federal government is at risk for the loans until the debt is repaid. The beginning balance of the loans subject to continuing compliance requirements was $4,713,592 at July 1, 2021.