Notes to SEFA
Title: HUD INSURED LOAN
Accounting Policies: BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards includes the federal grant activity of Evergreen Commons, HUD Project No. 11411376. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Evergreen Commons, it is not intended to and does not present the financial position, changes in net assets or cash flows of Evergreen Commons. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expenditures reported in 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 reimbursements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Project received a HUD insured loan under section 223(f) of the National Housing Act. The loan balance at the beginning of the year is included in the schedule of expenditures of federal awards. The Project has received no additional funds during the year. The loan is reported under liabilities in the statement of financial position. The balance of the loan as of June 30, 2022 amounts to $2,609,989.