Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Justin C. Stewart Housing Corporation, HUD Project No. 105-HD004, 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Management has elected to use the 10% de Minimis indirect cost rate for certain costs.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Justin C. Stewart Housing Corporation, had the following loan balances outstanding at June 30, 2022: Section 811 Capital Advance with the Department of Housing and Urban Development in the amount of $875,000. (See Note 3 - Capital Advance) This loan balance outstanding is included in the federal expenditures presented in the schedule.