Notes to SEFA
Title: Summary of Significant Accounting Policies
Accounting Policies: Note 1 Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal award activity of QLS Meadows, Inc., HUD Project No. 061-EE053-WAH 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 (CFR) 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 QLS Meadows, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of QLS Meadows, Inc.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. QLS Meadows, Inc. has elected not to use the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance.
Title: HUD Section 202 Capital Advance
Accounting Policies: Note 1 Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal award activity of QLS Meadows, Inc., HUD Project No. 061-EE053-WAH 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 (CFR) 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 QLS Meadows, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of QLS Meadows, Inc.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The HUD $5,978,600 Section 202 capital advance converted to a grant and will not be required to be repaid if QLS Meadows, Inc. remains in compliance with HUD stipulations regarding the use of the building.