Notes to SEFA
Title: Note 3-LOANS AND GRANTS WITH CONTINUING COMPLIANCE REQUIREMENTS
Accounting Policies: The information in the Schedule is presented on the accrual basis of accounting, in accordance withaccounting principles generally accepted in the United States of America. The information in the Scheduleis presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. Habitat elected not to use the option of the 10% de minimis indirect cost rate covered in 2 U.S. Code of Federal Regulations Part 200, Subpart E, Cost Principles.
Habitat's Community Financial Institution subsidiary, Habitat Mortgage Solutions, LLC, participates in grant programs with the U.S. Department of the Treasury that provide for a number of allowable uses including loan capital, loan loss reserves and administrative costs among others. As of June 30, 2022, $1,300,000 has been used as loan capital and $633,000 has been used as loan loss reserves. For the three grant programs combined, there is a total of $3,907,000 budgeted for future allowable grant activities.
Title: NOTE 4-CONTINGENCIES
Accounting Policies: The information in the Schedule is presented on the accrual basis of accounting, in accordance withaccounting principles generally accepted in the United States of America. The information in the Scheduleis presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. Habitat elected not to use the option of the 10% de minimis indirect cost rate covered in 2 U.S. Code of Federal Regulations Part 200, Subpart E, Cost Principles.
Habitat's federal programs are subject to financial and compliance audits by grantor agencies, which, if instances of material noncompliance are identified, may result in disallowed expenditures and affect Habitat's continued participation in specific programs. The amount, if any, of expenditures that may be disallowed by grantor agencies cannot be determined at this time, although Habitat expects such amounts, if any, to be immaterial