Notes to SEFA
Title: Note 2 - Basis of Presentation
Accounting Policies: Note 1 – Summary of Significant Accounting Policies - This schedule of expenditures of federal awards was prepared using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when they are earned, and expenses are recognized when the related liabilities are incurred. Expenditure driven grants are considered earned when the qualifying expenses have been incurred and all other grant requirements have been met. The Center did not use the 10% de minimis cost rate.
De Minimis Rate Used: N
Rate Explanation: The auditee does not allocate administrative costs to federal programs.
The schedule of expenditures of federal awards summarizes the expenditures of the Center under programs of the federal government for the year ended September 30, 2022. For purposes of the schedule of expenditures of federal awards, federal awards include all grants, contracts, and similar agreements entered into directly between the Center and agencies and departments of the federal government, and all sub-awards to the Center by nonfederal organizations pursuant to federal grants, contracts and similar agreements. Federal awards are classified into Major and Nonmajor programs in accordance with the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance).
Title: Note 3 – U.S. Department of Housing and Urban Development Loan Programs
Accounting Policies: Note 1 – Summary of Significant Accounting Policies - This schedule of expenditures of federal awards was prepared using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when they are earned, and expenses are recognized when the related liabilities are incurred. Expenditure driven grants are considered earned when the qualifying expenses have been incurred and all other grant requirements have been met. The Center did not use the 10% de minimis cost rate.
De Minimis Rate Used: N
Rate Explanation: The auditee does not allocate administrative costs to federal programs.
The Center’s component units have received U.S. Department of Housing and Urban Development loans and capital advances. The HUD loans require monthly payments of principal and interest, while the capital advances bear no interest and need not be repaid so long as the housing remains available for very low income disabled persons for at least 40 years. There were no additional advances received during the year. The balances of the loans outstanding at October 1, 2021 totaled $718,867; the balances of the capital advances outstanding at October 1, 2021 totaled $1,749,900.