Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: Expenditures included on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles of Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
To protect its interest in advances used to construct the housing units, HUD required the Organization to enter into a forty-year mortgage note in the amount of $1,068,700. The mortgage note is secured by property and bears no interest. The Organization is not required to make any principal payments on the note as long as the housing units remain available for very low-income eligible individuals or families as approved by HUD for at least 40 years from April 7, 2006. Failure to keep the housing available to very low-income persons with disabilities through April 6, 2046 would result in the entire amount being due and payable immediately.
Title: Basis of Presentation
Accounting Policies: Expenditures included on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles of Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Rivers Edge Property, Inc. for the year ended June 30, 2022. 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 operation of the Rivers Edge Property, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Rivers Edge Property, Inc..