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. Lemma Village, Inc. dba The Village on Park has elected not to use the 10-percent de minimis indirect cost rate allowed by the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Lemma Village, Inc. has received a mortgage loan that is insured by the U.S. Department of Housing and Urban Development under Section 207, pursuant to 223(f) of the National Housing Act. Upon satisfaction of the mortgage note, the mortgage insurance agreement shall automatically terminate. The HUD-insured loan balance outstanding at the beginning of the year is included with the federal expenditures presented in the schedule.