Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of UNITY of Greater New Orleans, Inc. and Subsidiaries (UNITY) under programs of the federal government for the year ended June 30, 2022. The information in 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). Because the schedule presents only a selected portion of the operations of UNITY, it is not intended to and does not present the financial position, changes in net assets, or cash flows of UNITY. 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 allowed or are limited as to reimbursement. Various reimbursement procedures are used for federal awards received by UNITY of Greater New Orleans, Inc. and Subsidiaries. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year end represent an excess of reimbursable expenditures over cash reimbursements and expenditures will be reversed in the remaining grant period. Pass-through entity identifying numbers are presented where available. Payments to subrecipients are disclosed on the schedule of expenditures of federal awardsfor the year ended June 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
As further disclosed in Note 8 to the financial statements, UNITY of Greater New Orleans, Inc. and Subsidiaries have an outstanding gap financing loan with the State of Louisiana, Division of Administration Office of Community Development (AL No. 14.228), originating in December 2010 with a 0% interest rate and principal balance of $7,413,184 at June 30, 2022. As further disclosed in Note 8 to the financial statements, 3222 Canal ApartmentsNonprofit, Inc., a wholly-owned subsidiary, executed a promissory note bearing interestof 0% payable to Gulf Coast Housing Partnership, Inc. (HOME funds) (AL No. 14.239)with a balance of $1,000,000 at June 30, 2022. As further disclosed in Note 8 to the financial statements, 2222 Tulane Apartments Nonprofit, Inc., a wholly-owned subsidiary, executed a promissory note bearing interest of 0% payable to Louisiana Housing Corporation (AL No. 14.267) with a balance of $817,211 at June 30, 2022.
Title: Notes Receivable
Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of UNITY of Greater New Orleans, Inc. and Subsidiaries (UNITY) under programs of the federal government for the year ended June 30, 2022. The information in 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). Because the schedule presents only a selected portion of the operations of UNITY, it is not intended to and does not present the financial position, changes in net assets, or cash flows of UNITY. 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 allowed or are limited as to reimbursement. Various reimbursement procedures are used for federal awards received by UNITY of Greater New Orleans, Inc. and Subsidiaries. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year end represent an excess of reimbursable expenditures over cash reimbursements and expenditures will be reversed in the remaining grant period. Pass-through entity identifying numbers are presented where available. Payments to subrecipients are disclosed on the schedule of expenditures of federal awardsfor the year ended June 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
On September 7, 2012, 2101 Louisiana Apartments, LLC, a consolidated subsidiary,executed a promissory note bearing interest of 1.5% in the amount of $2,030,000 payable to UNITY of Greater New Orleans, Inc. There were no expenditures required to bereported on the schedule of expenditures of federal awards as AL #14.256, Neighborhood Stabilization Program 2, for the year ended June 30, 2022. This loan balance is eliminated on the consolidated statements of financial position.