Notes to SEFA
Title: HUD Loan
Accounting Policies: 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of Community Living Opportunities II, Inc. The information on the 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in preparation of, the financial statements. 2. Basis Of Accounting The accompanying Schedule is presented using the accrual basis of accounting, which is described in Note 1 to the financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The HUD loan balance is insured under HUD Section 207, pursuant to Section 223(f). The loan outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule.