Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal award activity ofMarengo Falls Housing Corporation and is presented on the accrual basis of accounting. The informationin this schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of theoperations of Marengo Falls Housing Corporation, it is not intended to and does not present the financialposition, changes in net assets, or cash flows of Marengo Falls Housing CorporationNOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Marengo Falls Housing Corporation haselected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.NOTE C U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAMMarengo Falls Housing Corporation has received a U.S. Department of Housing and Urban DevelopmentCapital Advance under Section 202 of the National Housing Act. The Capital Advance under Section 202balance outstanding at the beginning of the year is included in the federal expenditures presented in theSchedule. Marengo Falls Housing Corporation received no additional Capital Advance loans during theyear. The balance of the Capital Advance outstanding at December 31, 2022 consists of:CFDANumber Program NameOutstanding Balanceat December 31, 2022Supportive Housing for the Elderly(Section 202 Capital Advance)14.157 $ 1,334,200
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 1334200.