Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards and state financial assistance includes the federal and state grant activity of the Corporation and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations and State of New Jersey, Department of Treasury OMB Circular 15-08-OMB. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.NON-CASH EXPENDITURESThe project was financed by capital advances from HUD and the State of NJ Department of Consumer Affairs totaling $10,358,900. The advances are secured by enforcement mortgages on the property of the Organization. The mortgages, which mature in April 2043, bear no interest and repayment is not required so long as the housing remains available for very low-income elderly persons or very low-income persons with disabilities. As of April 30, 2022 and 2021, the enforcement mortgages amounted to $10,358,900. Since the mortgages are not repayable and are forgiven at the end of the enforcement period so long as the Organization complies with HUD regulations, the proceeds from the mortgage have been recorded as net assets with donor restrictions.INDIRECT COSTSThe Organization has not previously received a negotiated indirect cost rate, nor has it elected to use the 10% de minimis indirect cost rate allowable under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).SUBRECIPIENTSThere were no subrecipients present for the year ended April 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 9188900.