Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal grant activity of HUD Project No. 127-11202 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 Garden Terrace Senior Living, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Garden Terrace Senior Living.NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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. Garden Terrace Senior Living has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.NOTE C - U.S. DEPARTMENT OF HOUSING AND UBAN DEVELOPMENT LOAN PROGRAMGarden Terrace Senior Living has received a U.S. Department of Housing and Urban Development direct loan under Section 223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Garden Terrace Senior Living received no additional loans during the year. The balance of the loan outstanding at March 31, 2022 consists of:Outstanding Balance atCFDA NumberProgram NameMarch 31, 202214.155Section 223(f)$ 4,365,888
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 4365888.