Notes to SEFA
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grantactivity of Affordable Homes of South Texas, Inc. and is presented on the accrual basis ofaccounting and in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Therefore, some amountspresented in this schedule may differ from amounts presented in, or used in thepreparation of the financial statements.For purposes of this schedule, federal awards include both federal financial assistancereceived directly from a federal agency, as well as federal funds received indirectly byAHSTI from a non-federal agency or other organizations. Only the portion of programexpenditures reimbursable with such federal funds is reported in the accompanyingschedule. Program expenditures in excess of the maximum federal reimbursementauthorized or the portion of program expenditures that were funded with state, local orother non-federal funds are excluded from the accompanying schedule.AHSTI has not elected to use the ten percent De Minimis indirect cost rate as allowed bythe uniform guidance.Because the Schedule presents only a selected portion of the operations of AffordableHomes of South Texas Inc., it is not intended to and does not present the financial position,changes in net assets, or cash flows of the Organization.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.