Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: 1 -BASIS OF PRESENTATIONThe accompanying combined Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Seven Hills Foundation and Affiliates (the Foundation) under programs of the federal government 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 operations of the Foundation, it is not intended to and does not present the combined financial position, changes in net assets, or cash flows of the Foundation.For the purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly and indirectly between the Foundation and departments of the federal government, the Commonwealth of Massachusetts and the State of Rhode Island.2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of accountingExpenditures reported on 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 reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.Indirect cost rateThe Foundation has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
3 -MORTGAGE NOTES PAYABLEThe Foundation also has executed one mortgage note payable to the U.S. Department of Housing and Urban Development. This mortgage had an outstanding balance of $529,697 as of June 30, 2022, and bears interest at the rate of 9% per year.