Notes to SEFA
Title: NOTE A BASIS OF PRESENTATION
Accounting Policies: ACCRUAL ACCOUNTING
De Minimis Rate Used: N
Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMUS COST RATE
The accompanying schedule of expenditures of federal awards includes the federal award activity of Chalon Living, Inc. HUD Project No. 123-EE024, and is presented on the accrual basis of accounting. 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, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Chalon Living, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Chalon Living, Inc.
Title: NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: ACCRUAL ACCOUNTING
De Minimis Rate Used: N
Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMUS COST RATE
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 are not allowable or are limited as to reimbursement. Chalon Living, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE C LOAN PROGRAM
Accounting Policies: ACCRUAL ACCOUNTING
De Minimis Rate Used: N
Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMUS COST RATE
Chalon Living, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented Schedule. Chalon Living, Inc. received no additional loans during the year. The balance of the loan outstanding at June 30, 2023 consists of: Outstanding Balance at
CDFA Number Program Name June 30, 2023
14.157 Section 202 Direct Loan $1,975,400