Notes to SEFA
Title: Capital Advance Program
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of AHI Housing, Inc., HUD Project No. 066-HD-017, under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Entity. 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.
The Organization bought and renovated 11 units with HUD funds. A mortgage was executed with HUD on June 19, 1997. The outstanding balance as of June 30, 2022, was $941,600. The entire amount of the capital advance of $941,600 will be forgiven on March 1, 2038, if the terms and conditions are complied with for the full period. Additional disclosures regarding the Capital Advance Program are noted in Note 5 of the Notes to the Financial Statements.