Title: 3. INDIRECT COST RATES
Accounting Policies: 1. GENERALThe accompanying schedule of expenditures of federal awards (the schedule) presents theactivity of all federal awards programs of Wartburg Housing Development Fund Corporation,Project No. 012-EH-706 (the Company) under programs of the federal government for the yearended December 31, 2022. Federal awards received directly from federal agencies, as well asfederal awards passed through other government agencies, are included in the schedule.The information in this schedule is presented in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Because theschedule presents only a selected portion of the operations of the Company, it is not intendedto and does not present the financial position, change in net assets, or cash flows of theCompany.2. BASIS OF ACCOUNTINGThe accompanying schedule is presented using the accrual basis of accounting and ispresented in accordance with accounting principles generally accepted in the United Statesused by the Company to report to the federal government. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The Company has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: 4. SUB-RECIPIENTS
Accounting Policies: 1. GENERALThe accompanying schedule of expenditures of federal awards (the schedule) presents theactivity of all federal awards programs of Wartburg Housing Development Fund Corporation,Project No. 012-EH-706 (the Company) under programs of the federal government for the yearended December 31, 2022. Federal awards received directly from federal agencies, as well asfederal awards passed through other government agencies, are included in the schedule.The information in this schedule is presented in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Because theschedule presents only a selected portion of the operations of the Company, it is not intendedto and does not present the financial position, change in net assets, or cash flows of theCompany.2. BASIS OF ACCOUNTINGThe accompanying schedule is presented using the accrual basis of accounting and ispresented in accordance with accounting principles generally accepted in the United Statesused by the Company to report to the federal government. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Of the federal expenditures presented in the schedule, the Company provided no federalawards to sub-recipients.
Title: 5. CAPITAL ADVANCE
Accounting Policies: 1. GENERALThe accompanying schedule of expenditures of federal awards (the schedule) presents theactivity of all federal awards programs of Wartburg Housing Development Fund Corporation,Project No. 012-EH-706 (the Company) under programs of the federal government for the yearended December 31, 2022. Federal awards received directly from federal agencies, as well asfederal awards passed through other government agencies, are included in the schedule.The information in this schedule is presented in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Because theschedule presents only a selected portion of the operations of the Company, it is not intendedto and does not present the financial position, change in net assets, or cash flows of theCompany.2. BASIS OF ACCOUNTINGThe accompanying schedule is presented using the accrual basis of accounting and ispresented in accordance with accounting principles generally accepted in the United Statesused by the Company to report to the federal government. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
In October 1992, the Company executed a capital advance building agreement with HUD for $7,290,100. The maximum advance was subsequently reduced to $6,977,200. The capital advance shall bear no interest and is not required to be repaid as long as the propertys apartments remain available to eligible very low income households and in accordance with Section 202 for a period of forty years. If, during the term of the forty-year advance agreement, the propertys apartments are not available to eligible very low income households, the entire capital advance of $6,977,200 is due and payable to HUD. The capital advance is secured by a mortgage on the Companys land, building, and equipment.