Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards ("Schedule") presents the activity of all
federal award programs of Housing And Neighborhood Development Service (the "Organization"). The
Organization's reporting entity is defined in Note A to the consolidated financial statements. All federal
awards received directly from federal agencies, as well as federal awards passed through other
governmental agencies, are included on the Schedule, if applicable. The Organization maintains its records using the accrual basis of accounting, a comprehensive basis of
accounting that conforms to accounting principles generally accepted in the United States of America.
Under this method, expenses are recognized when incurred, not when paid. As such, the expenditure
column in the schedule of expenditures of federal awards represents cash payments adjusted for payables
and other accrued liabilities outstanding at year end.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance.
Balance of loans and loan guarantee programs outstanding at the end of the audit period for loans under 2
CFR Section 200.502(b) for which the federal government imposes continuing compliance requirements are
as follows: HOME INVESTMENT PARTNERSHIPS PROGRAM LOANS (14.239) - 2008780. NEIGHBORHOOD STABILIZATION
PROGRAM, PHASE 2 - LOAN (14.228) - 272637
Title: relationship to the consolidated financial statement
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards ("Schedule") presents the activity of all
federal award programs of Housing And Neighborhood Development Service (the "Organization"). The
Organization's reporting entity is defined in Note A to the consolidated financial statements. All federal
awards received directly from federal agencies, as well as federal awards passed through other
governmental agencies, are included on the Schedule, if applicable. The Organization maintains its records using the accrual basis of accounting, a comprehensive basis of
accounting that conforms to accounting principles generally accepted in the United States of America.
Under this method, expenses are recognized when incurred, not when paid. As such, the expenditure
column in the schedule of expenditures of federal awards represents cash payments adjusted for payables
and other accrued liabilities outstanding at year end.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance.
Federal award revenues and expenditures are reported in the Organization's consolidated financial
statements in the appropriate accounts.
The information in the accompanying 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 this
Schedule may differ from amounts presented in, or used in the preparation of, Housing And Neighborhood
Development Service’s consolidated financial statements. Such expenditures are recognized following, as applicable, either the cost principles in the U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations , or the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowed or are limited as to reimbursement, whichever is applicable.