Notes to SEFA
Title: NOTE C - HUD LOAN PROGRAM
Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Cliffside Apartments and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 Project, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of the Project. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: NOTE D - INDIRECT COST RATEThe Project has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Project has received a U.S. Department of Housing and Urban Development direct loan under Section 221(d)(4) of the National Housing Act. The loan balance outstanding at the beginning of the year of $2,662,980 plus no additional loans is included in the federal expenditures presented in the Schedule. The balance of the loan outstanding at June 30, 2022 under the Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly - Market Rate Interest Program was $2,623,403.