Notes to SEFA
Title: Non-Cash Expenditures
Accounting Policies: Note 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Riese Projects Urban Renewal Corporation The Murray S. Bisgaier Residence HUD Project No. 031-11106 under programs of the federal government for the year ended December 31, 2022. The information on this Schedule is prepared 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 Riese Projects Urban Renewal Corporation The Murray S. Bisgaier Residence HUD Project No. 031-11106, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Riese Projects Urban Renewal Corporation The Murray S. Bisgaier Residence HUD Project No. 031-11106.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. During the year ended December 31, 2022, the Project did not provide any funds relating to their federal programs to subrecipients. The Project has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Note 3. Non-Cash Expenditures The Project has a Section 236 Interest Reduction Program agreement with the U.S. Department of Housing and Urban Development (HUD for an interest subsidy on its first mortgage. These interest subsidy payments are paid directly to the mortgage company.
Title: Federally Funded and Insured Mortgages
Accounting Policies: Note 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Riese Projects Urban Renewal Corporation The Murray S. Bisgaier Residence HUD Project No. 031-11106 under programs of the federal government for the year ended December 31, 2022. The information on this Schedule is prepared 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 Riese Projects Urban Renewal Corporation The Murray S. Bisgaier Residence HUD Project No. 031-11106, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Riese Projects Urban Renewal Corporation The Murray S. Bisgaier Residence HUD Project No. 031-11106.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. During the year ended December 31, 2022, the Project did not provide any funds relating to their federal programs to subrecipients. The Project has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Note 4. Federally Funded and Insured Mortgages The Project has a HUD insured mortgage with Midland States Bank under the Section 223(f) of the National Housing Act. The mortgage balance at the beginning of the year is included in the federal expenditures presented in the Schedule. The Project received no additional loans during the year. The balance of the outstanding insured mortgage at December 31, 2022 is $1,217,085.